(Alliance News) - Shares rose in Corcel PLC on Monday after signing a non-binding agreement with Shandong New Powder Cosmo Advanced Material & Technology for the supply of nickel from the company's projects.
Shares in the battery metals and energy investment firm were up 14% at 1.66 pence on Monday morning in London.
Corcel said the agreement was for the supply of nickel from its Mambare and WoWo gap nickel projects where it holds a 41% interest and full ownership respectively.
Corcel said Shandong New Powder is seeking to purchase up to 500,000 tonnes per annum of nickel direct shipping ore. The initial term of the offtake agreement will be for three to five years.
Pricing of the products will be linked to the underlying commodity prices on the London Metals Exchange or another mutually agreed index.
Shandong New Powder is a joint venture between Sentient Global Resources Funds, Shandong Dougide Group and Cosmo Advanced Material & Technology Co Ltd, which focuses on producing lithium battery cathode materials.
Shandong New Powder owns and operates a 5,000 tonnes per annum cathode plant in China which has plans to expand to 20,000 tonnes per annum in 2022.
By Heather Rydings; heatherrydings@alliancenews.com
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Corcel (CRCL)