GME Resources (ASX:GME) announces that it has signed a non-binding Memorandum of Understanding (MOU) with Stellantis N.V for the future sale of battery grade nickel and cobalt from the NiWest Nickel-Cobalt Project in Western Australia.
The MOU contemplates the finalisation of a definitive agreement between the two companies, however negotiation and execution of the detailed agreement is subject to due diligence and customary closing conditions, including respective company approvals.
The definitive agreement is expected to be completed this month.
GME reports that more than US$30 million has been invested into drilling, metallurgical testwork and development studies to date.
Commenting on the signing of MOU with Stellantis, GME Managing Director and CEO, Paul Kopejtka, said: “Stellantis is a partner of the highest calibre and GME is delighted to have signed this MOU in what we hope is the first step in a long-term partnership. We’re very pleased with how our discussions have progressed and we now look forward to entering more detailed negotiations in parallel with the start of the Definitive Feasibility Study for the NiWest Nickel-Cobalt Project.
“we’re very pleased with how our discussions have progressed and we now look forward to entering more detailed negotiations in parallel with the start of the definitive feasibility study for the niwest nickel-cobalt project”
A definitive agreement with Stellantis would be a critical step in being able to progress the NiWest Project through to commercial operations.”
Stellantis Chief Purchasing and Supply Chain Officer, Maxime Picat, also said: “Every day, Stellantis is working to provide our customers clean, safe, affordable, cutting-edge freedom of mobility. Securing the raw material sources and battery supply will strengthen Stellantis’ value chain for electric vehicle battery production and equally important, help the company achieve its aggressive decarbonisation target.”
GME also notes that the MOU comes following the completion of an update to the cost estimates and price inputs into the NiWest Nickel-Cobalt Project’s pre-feasibility study (PFS) as announced in July of this year.
The update confirmed the robustness of a long-life operation directly producing high-purity nickel and cobalt sulphate products to be delivered into lithium-ion battery raw material markets.
GME Resources is an ASX-listed exploration and development company with nickel, cobalt and gold interests throughout Western Australia. The company’s 100% owned NiWest Nickel Cobalt Project is situated adjacent to Glencore’s Murrin Murrin Operations within the Western Australian Nickel belt. The project is regarded as one of the largest and highest quality undeveloped nickel/cobalt resources in Australia and represents GME’s principal asset.
Meanwhile, Stellantis N.V. is regarded as one of the world’s leading automakers and mobility providers, whose storied and iconic brands embody the passion of their visionary founders in their products and services.
The company currently boasts a portfolio of 14 vehicle brands, including Abarth, Alfa Romeo, Chrysler, Dodge, Fiat and Maserati among 12 others, as well as two mobility companies. Stellantis also aspires to become the greatest sustainable mobility tech company, while creating added value for all stakeholders as well as the communities in which it operates.
With the MOU now signed and sealed, GME Resources announces that it remains focused on the completion of the definitive agreement with Stellantis in order to take the next critical step in being able to progress its NiWest project through to commercial operations.
Images: GME Resources Limited
