Corcel plc said that its proposed off-take partner had invited the company to move to a binding agreement for supplies from the Mambare (41%) and Wowo Gap (100%) nickel-cobalt projects in Papua New Guinea.
AGREEMENT
In January 2022, the company signed a non-binding memorandum of understanding (MOU) with Shandong New Powder Cosmo AM&T (NPC).
A representative of Sentient Equity Partners (SEP), one of the three main investors and the mining specialists among NPC shareholders, has since visited Cosmo AM&T which is Korea’s fourth largest lithium battery cathode producer.
Corcel today said that the meeting successfully advanced discussions covering the MOU and addressed NPC’s need to secure long-term supplies of critical battery metals.
“While NPC’s current revenues are robust, access to reliable and reasonably priced raw materials remains an ongoing challenge for the plant and the sector generally.
“NPC is currently preparing a detailed report on the Mambare and Wowo gap projects for review by its shareholders, and COSMO AM&T has invited Corcel’s management to Korea to advance discussions and move the MOU to a binding agreement.”
DIRECT SHIPPING ORE
The Mambare JV partners recently concluded a three-day visit with the Papua New Guinea Mineral Resource Authority in Popondetta to give further information on the project to officials and landowners.
At Gona and Port Harvey (next to Oro Bay), the JV also completed water depth soundings to confirm the appropriateness of each location for direct shipping ore (DSO) export to bulk carrier vessels for onward transfer to Asia.
Corcel added that Port Harvey would likely be an adequate back-up site to the primary Oro Bay export option currently under consideration.
The JV’s representatives will remain in PNG for the next ten days as PNG starts its national elections.