Global Cobalt Corp. (TSXV:GCO) signed a preliminary offtake agreement with Beijing Easpring Material Technology Co., Ltd. The Agreement gives Global Cobalt the right to sell to Easpring up to 100% of the total crude cobalt hydroxide, cobalt concentrate or cobalt carbonate production from the Karakul Cobalt Project for an initial term of 10 years from the commencement of commercial production at market competitive prices if the material meets Easpring’s technical requirements.
As quoted in the press release:
In addition, the Agreement also allows for Easpring to participate in future mine project financing.
“We are very pleased to be executing our first offtake agreement with a company of Easpring’s stature, experience and strong ties to end-users in the cobalt market and rechargeable battery sector while retaining the option to develop other customers,” commented Global Cobalt President & CEO Erin Chutter. “The Easpring Agreement reflects a robust, long-term demand outlook for cobalt and will play an important role in securing future project financing to develop Karakul.”
Founded in 2001 and based in Beijing, China, Easpring engages in the research, development, production and sale of energy materials. It offers lithium cobalt oxide, multi-element oxide, lithium manganese oxide, and other cathode materials for small lithium batteries and power batteries, as well as electronic ceramics materials. The company is a leading specialized supplier of cathode material for lithium-ion batteries to industry giants such as Samsung, Sony, Panasonic, SK Continental, and BYD.