Corcel Regulatory News (CRCL)

Corcel PLC

("Corcel" or the "Company" or "CRCL")

MOU for Nickel Offtake Signed with Shandong New Powder COSMO AM&T

10 January 2022

Corcel, the natural resource exploration and development company with interests in battery metals and flexible energy generation and storage, announces that it has entered into a non-binding Memorandum of Understanding ("MOU") with Shandong New Powder COSMO AM&T ("NPC") for the supply of nickel from the Company's Mambare and WoWo gap nickel projects, where the Company owns a 41% and 100% interest respectively.

Highlights:

o NPC is seeking to purchase up to 0.5Mt per annum of nickel DSO ("Direct Shipping Ore") products

o CRCL and NPC agree to negotiate in good faith to enter into a binding nickel DSO offtake agreement for production from the Mambare and Wo Wo Gap projects

o NPC is a joint venture between Sentient Global Resources Funds, Dougide Group and the Korean COSMO AM&T Co. Ltd, and focusing on producing lithium battery cathode materials 

o NPC owns and operates a 5,000tpa cathode plant in China with plans to expand to 20,000tpa in 2022

Agreement Details

Under the terms of the MOU, NPC is seeking to purchase up to 0.5Mt per annum of nickel DSO products from the Mambare and WoWo Gap projects.

As part of the MOU, NPC and CRCL have agreed to negotiate in good faith to enter into a binding offtake agreement for the purchase of nickel by NPC. The initial term of the offtake agreement will be for 3 to 5 years. Pricing of the products will be linked to the underlying commodity prices on the London Metals Exchange, or some other mutually agreeable index, with consideration given to purity and specification.

NPC and CRCL will also work together to establish product specifications to be used in the offtake agreement that are acceptable to NPC and can be produced by the Company's nickel projects. This may constitute additional development of existing feasibility studies as well as technical analysis. NPC and CRCL also agree to work together to identify and secure the funding required to move the Mambare and Wo Wo Gap projects to production.

The term of the MOU is for 12 months, unless extended by mutual consent.

About Shandong New Powder COSMO AM&T

Shandong New Powder COSMO AM&T (NPC) is a JV built by Sentient Global Resources Funds, Shandong Doguide Group and the Korean COSMO AM&T Co., Ltd.

Sentient Global Resources Funds is a private equity group with $2.7bn under management with assets in the metals, minerals, and energy space. Doguide Group is the 3rd largest titanium pigment producer in China with 200ktpa and $300m of annual revenues. COSMO AM&T is a publicly listed Korean company with a US $1.3bn market capitalisation and is the number 4 lithium battery cathode producer in Korea with a capacity of 12,000tpa, serving customers such as Samsung, LG, Sony and Umicore.

The Chinese based NPC JV has introduced advanced cathode technology and equipment from Korea and Japan to China, and focuses on the R&D and production of LCO, NCM523, NCM622, NCM811, and NCA li-ion battery ternary cathode materials, which are used in electronics, electric vehicles and energy storage applications.

For further information, please contact:

Scott Kaintz 020 7747 9960 Corcel Plc CEO 

James Joyce / Andrew de Andrade 0207 220 1666 WH Ireland Ltd NOMAD & Broker

Simon Woods 0207 3900 230 Vigo Communications IR 

This announcement contains inside information under Article 7 of Regulation (EU) 596/2014.