Australian small-cap Kuniko Ltd (ASX: KNI) this morning received a major boost of confidence, with major automaker Stellantis (NYSE: STLA) electing to take a large stake in the nickel and cobalt explorer, while also agreeing to a multi-year offtake agreement.
The arrangement will see Stellantis secure 35% of future offtake production from Kuniko’s Norway-based low carbon exploration projects for both nickel and cobalt sulphate. The agreement is said to be for a period of nine years.
Kuniko’s multiple projects in the region include the Skuterud Cobalt Project, which has recently intercepted 1.0 metre of 1.08% cobalt, as well as 6.2 metres of 0.43% cobalt within an eight hole drill program.
The company also has brownfield projects in the region, including the Ringerike Battery Metals Projects which features historic nickel-copper mines, and the Ertelien Nickel project, which has seen historic production of 400,000 tonnes of ore at 1.04% nickel, 0.69% copper and 0.17% cobalt. Recent drilling at Ertelien has seen results including 25.1 metres of 1.14% nickel and 1.20% copper.
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READ: Stellantis Enters Offtake Agreement For Nickel, Copper With Alliance Nickel
“This strategic partnership with Stellantis promotes sustainable European battery value chain solutions and validates the potential of our battery metals project portfolio in Norway. Together with Stellantis, we eagerly anticipate working hand in hand to achieve exploration success, move towards production, and make meaningful contributions to the growth and advancement of the European battery industry,” commented Kuniko CEO Antony Beckmand on the development.
In addition to the future production offtake agreement, Stellantis has agreed to take a 19.99% stake in the issuer via an investment of €5.0 million. Stellantis as a result of the investment will have rights to nominate one director to Kuniko’s board.
Kuniko last traded at $0.43 on the ASX.
Information for this briefing was found via the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
