FPX Nickel (TSXV: FPX) is potentially entering the battery supply chain, following a non-binding memorandum of understanding it has signed with Japan Organization for Metals and Energy Security (JOGMEC), as well as Prime Planet Energy & Solutions.
Prime Planet is a joint venture between Toyota Motor Company and Panasonic, with Toyota owning a 51% stake in the venture.
The MOU is focused on a framework that will see FPX and Prime Planet explore opportunities for nickel production from FPX’s flagship Baptiste Nickel Project to be utilized within the battery supply chain. The MOU outlines the ultimate production of nickel sulphate and cathode active materials for Prime Planet’s supply chain.
“We are pleased to initiate this MOU with PPES and JOGMEC, two groups leading the global transition to a low-carbon, electrified economy. This MOU demonstrates the strategic nature of the Baptiste Project and its potential to produce an ideal nickel feedstock for the battery supply chain. We look forward to collaboration with our Japanese partners to support the development of North America’s critical minerals ecosystem,” commented FPX Martin Turenne on the announcement.
Part of the larger Decar Nickel Project, the Baptiste Nickel project is a greenfield discovery of nickel mineralization that contains awaruite, a nickel-iron alloy. A preliminary economic study released earlier this month outlines an after-tax NPV (8%) of $2.01 billion, along with an IRR of 18.6%. The project, with probably reserves of 3,125 kt of total nickel metal, is estimated to have a 29 year mine life with average annual production of 59,100 tonnes of nickel in concentrate.
While the arrangement is currently non-binding, FPX has indicated that any potential binding agreement would likely include funding to advance the Baptiste Project through the feasibility study, as well as funding to conduct the environmental assessment and permitting processes.
The MOU is non-exclusive, and contains no fixed timing for the execution of binding arrangements.
FPX Nickel last traded at $0.43 on the TSX Venture.
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