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ST. LOUIS, Sept. 12, 2024 /PRNewswire/ -- US Strategic Metals ("USSM" or the "Company") is pleased to announce it has entered into a strategic partnership with Glencore AG, a wholly-owned subsidiary of Glencore plc (together, with its subsidiaries, "Glencore") and Chilean Cobalt Corp. (OTCQB: COBA) ("C3") to explore domestic United States ("US") downstream processing of cobalt and copper intermediate products from C3's La Cobaltera project in Chile.
On July 8, 2024, C3 announced an LOI with Glencore regarding an offtake agreement for cobalt and copper intermediate products, as well as a strategic partnership, for C3's La Cobaltera project in northern Chile.
Today's announcement adds a processing LOI with USSM that builds upon this, with a three-way strategic partnership (the "Agreement") exploring collaboration on domestic US processing solutions with the objective of establishing an Americas-centric cobalt supply chain, connecting C3's La Cobaltera cobalt-copper project in Chile with USSM's integrated critical minerals processing site in Missouri, USA – which may include development of a dedicated processing line for La Cobaltera concentrate at USSM's site. This is expected to strengthen US critical minerals supply chains while providing a sustainable and traceable source of raw materials for the growing domestic lithium-ion battery manufacturing capacity and high-performance metal alloy markets. USSM, C3 and Glencore anticipate that the majority or full spectrum of cobalt and copper intermediate product stream will be shipped into the US and/or US Free Trade Agreement ("FTA") countries.
This Agreement works to satisfy USSM and C3's own conditions precedent regarding both parties' potential strategic project financing from US EXIM Bank.
This Agreement will be subject to conditions precedent and contain standard termination rights, which are typical for an agreement and project of this nature. All parties will include agreed Responsible Sourcing and Sustainability provisions.
This press release does not constitute an offer or sale of, or the solicitation of an offer to buy, securities of the Company nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About US Strategic Metals
USSM is a St Louis, Missouri, US-based critical minerals company; its' state of-the-art metallurgical plant will process third party concentrates, cobalt hydroxide and recycle metals from lithium-ion batteries. USSM will also mine and process the largest cobalt reserve in North America.