Corcel enters MoU for metals JV

Corcel plc has entered into a memorandum of understanding (MoU) for a proposed 50-50 joint venture (JV) for its interests in nickel-cobalt in Papua New Guinea (PNG).

JOINT VENTURE

Corcel and Shandong New Powder COSMO AM&T (NPC)’s JV company will be Integrated Battery Metals (IBM).

The partners intend to create a Singapore-based JV which will own Corcel’s assets in the Mambare and Wowo Gap projects alongside the Doncella lithium project in Argentina.

The JV will pursue an “Asian-focused battery metals strategy” with direct links to offtake partners and end users. 

Both parties intend to list the new company in Singapore in the medium term.

TERMS

Subject to contract, the JV will comprise Corcel’s 41% interest in the Mambare nickel-cobalt project and its 100% interest in Wowo Gap nickel-cobalt project

NPC will add its 4.48% interest in Hanacolla S.A., owner of the Doncella lithium project in Argentina, with additional lithium and other battery metal interests expected to follow. 

The 4.48% interest in Hanocolla has been recently externally valued at $4.1 million by reference to a funding for 10% of Hanocalla valuing the business at $92m, said Corcel. 

Corcel aims to benefit from a $1.5 million carried interest at Wowo Gap, a 1.5% gross revenue royalty on Wowo Gap and nominate half the board of the JV.

The partners expect to sign the JV transaction in the coming weeks with completion conditional on Corcel’s Mambare partner’s pre-emption rights being waved and administrative approvals.  

“We believe this proposed PNG restructuring, with its associated carry, and an ultimate Singapore listing, is the best way to bulk up and ultimately unlock the significant value in our battery metals portfolio,” said executive chairman James Parsons.

DONCELLA

The Doncella lithium project is Hanacolla’s flagship project in the Arizaro Salar, in the Salta province, known as being part of the Lithium Triangle, approximately 170km from Salta. 

The Doncella project is a lithium-in-brine deposit, consisting of 725km^₂ lithium salt brine style mineral tenements within the Salar de Arizaro Basin. 

Arizaro is the largest salar in Argentina and one of the most important in Puna Region. 

Hanacolla recently raised $9.2m in new equity valuing the entirety of the business at $92m and funding the ongoing exploration and development programme.