(TheNewswire)
Coquitlam, BC – TheNewswire - August 11, 2022 – Fuse Cobalt Inc. (“the Company“ or “Fuse”) (TSXV:FUSE ) , ( OTC:FUSEF ) ( FRA:43W3) ”) is pleased to announce that effective August 9, 2022 , theCompany has signed a non-binding Memorandum of Understanding(“MOU”) regarding a Cobalt Raw Material Supply Agreement with Electra Battery MaterialsCorporation (“Electra”) ( NASDAQ: ELBM, TSX: ELBM ). This agreement is focused primarily on Fuse’s Teledyneand Glencore Bucke Cobalt Exploration Projects located in Cobalt,Ontario in close proximity to Electra’s cobalt sulfate refinery inTemiskaming Shores, Ontario.
Mr. Robert Setter, Fuse CEO comments “This MOU is thefirst step towards a potential Definitive Agreement to supply cobaltraw material for Electra’s nearby cobalt refinery and sets out theterms by which we will exchange information with Electra to advance apotential transaction to involving the supply of cobalt raw materials. The end result of this collaboration will be the execution of aDefinitive Agreement to provide cobalt feed stock to the ElectraCobalt Refinery which is roughly a stone’s throw away from our two cobalt exploration properties inOntario.”
Trent Mell, Electra’s CEO stated, “Having adomestic source of cobalt raw material produced ethically and withlow-carbon emissions will help us to better address the demand foronshore EV battery materials. We look forward to working with FuseCobalt as they advance development of their projects and beginproduction.”
The Transaction contemplates the supply of cobalt rawmaterial from either one or both of the Company’s Glencore Bucke andTeledyne mining projects located in northeastern Ontario, Canada. Thetransaction is expected to provide a ‘Made in NorthAmerica’ , low greenhouse gas emissions cobalt sulfate solution,capable of supplying the continent’s growing lithium-ion batterysupply capacity.
This MOU is anticipated to lay the framework for afuture Transaction contemplating the following elements:
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Electra commits topurchase up to 2 kpta (kilo tonnes) per annum of cobalt contained inraw material from Fuse Cobalt’s ‘Glencore Bucke’ and/or‘Teledyne’ operations to Electra’s Cobalt Camp Refinery
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Fuse Cobalt will use commercially reasonable efforts toachieve commercial production on or before January 1, 2028, which maybe extended by agreement of the parties for up to 12 months followingwhich Electra has a right to terminate the agreement and Fuse Cobaltmay elect to sell to other parties.
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The purchase price to be paid by Electra for cobalt inraw material will be linked to Fastmarkets MB’s standard-grade metalprice multiplied by a payable mechanism to be agreed prior tocompletion of the Transaction.
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Electra and Fuse Cobalt agree to collaborate on ways toextract copper by-product on a profit share basis.
The Transaction is subject to a Definitive Agreementwhich is in turn subject to the following conditions:
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Fuse to develop a processing flowsheet designed toproduce a cobalt material which is suitable for further processing tobattery grade cobalt sulfate at Electra’s refinery.
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Fuse to align with and abides by Electra’s SupplyChain Policy, Environmental Policy, Sustainability Policy, and HumanRights Policy, as outlined in Appendix A of this MOU. Within 12 monthsof first production, furthermore, Fuse Cobalt commits to starting theprocess to become Responsible Minerals Initiative certified throughthe Responsible Minerals Assurance Process.
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Fuse to successfully complete a bankable feasibilitystudy of either or both of the aforementioned primary cobaltprojects.
About Fuse Cobalt Inc. https://fusecobalt.com/
Fuse Cobalt Inc. is a Canadian based explorationcompany that trades under the symbol FUSE on the TSX Venture Exchange.The Company's focus is on exploration for high value metals requiredfor the manufacturing of batteries.
Ontario Cobalt Properties :
Fuse owns a 100% interest its Glencore Bucke Property,s ituated in Bucke Township, 6 km east-northeast of Cobalt, Ontario, subject to a back-inprovision, production royalty and off-take agreement . The GlencoreBucke Property consists of 16.2 hectares and sits along the westboundary of Fuse’s Teledyne Cobalt Project. The Company also ownsa 100% interest, subject to a royalty, in the Teledyne Project locatednear Cobalt, Ontario. The Teledyne Property adjoins the south andwest boundaries of claims that hosted the Agnico Mine.
On Behalf of the Board of Directors
“Robert Setter”
Robert Setter, President & CEO
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release. This news release may containforward-looking statements which include, but are not limited to,comments that involve future events and conditions, which are subjectto various risks and uncertainties. Except for statements ofhistorical facts, comments that address resource potential, upcomingwork programs, geological interpretations, receipt and security ofmineral property titles, availability of funds, and others areforward-looking. Forward-looking statements are not guarantees offuture performance and actual results may vary materially from those statements. General businessconditions are factors that could cause actual results t
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