Broken Hill Prospecting and spin-off Cobalt Blue have established a strategic alliance with LG International (LGI) at their Thackaringa cobalt project joint venture in New South Wales.
Under the partnership, LGI, the resources investment division of Korea’s LG, will provide capital and technical assistance for the Thackaringa JV to make high-purity, battery-grade cobalt sulphate.
Cobalt Blue has executed a binding term sheet with LG to raise $US6 million ($7.8 million) at $1.10/share by April 16 as part of the alliance.
Broken Hill managing director Anthony Johnston described the alliance as a major win for the Thackaringa cobalt project.
“The LG Group brings valuable expertise in product development and other disciplines to the joint venture and is a significant milestone along the road to developing this world-class resource,” Johnston said.
Broken Hill, which holds legal title to the Thackaringa tenement leases, completed the spin-off of Cobalt Blue in February 2017. Cobalt Blue can earn 100 per cent ownership of the project through a four-stage farm-in agreement.
LGI is acting in co-operation with LG Chem, a division of the Korean company that is the fourth largest electric vehicle (EV) battery maker in the world, on the alliance.