PERTH (miningweekly.com) – Joint venture (JV) partners Broken Hill Prospecting and Cobalt Blue Holdings have signed a strategic partnership with the resources investment arm of the LG Corporation.
Under the terms of the partnership, LG International will provide capital and technical assistance at the Thackaringa cobalt project, in New South Wales, to make a high purity battery grade cobalt sulphate.
“The strategic alliance with LG International is a major win for the Thackaringa cobalt project, and our board welcomes LG’s partnership,” said Broken Hill MD Trangie Johnston.
“The LG group brings valuable expertise in product development and other disciplines to the JV and is a significant milestone along the road to developing this world-class cobalt resource.”
Broken Hill holds the title to the Thackaringa tenement leases under the JV, with Cobalt Blue able to earn up to 100% of the Thakaringa cobalt project if it completes a four-stage farm-in. The ASX-listed company has committed to spend A$10.9-million in project expenditure before the end of June 2020, and pay Broken Hill A$7.5-million in cash.
Broken Hill will also be entitled to a 2% net smelter royalty on all cobalt produced from the tenement area, for the life of the project.