Poseidon Nickel (ASX: POS, “the Company”) is pleased to advise that the Company has entered into a Memorandum of Understanding (MoU) with PBT to study the merits of Poseidon supplying nickel concentrate to PBT’s proposed pCAM refinery planned to be constructed in WA.
Managing Director and CEO, Peter Harold, commented: “We look forward to working with PBT to determine if our potential concentrate production could be feed for PBT’s proposed refinery, should we decide to proceed with development of our projects. This could be a great way for us to improve the payability of the nickel in our concentrates and improve the margins of our projects.”
Pure Battery Technologies (PBT) is an Australian based company with an international nickel and cobalt refining operation in Germany (owned via a subsidiary company) that is advancing its plan to establish a refinery in Western Australia to produce precursor Cathode Active Material (pCAM) battery metal products. Initial studies will focus on initial production of up to 50,000tpa of pCAM.
PBT and Poseidon have entered into a Memorandum of Understanding (MoU) whereby Poseidon and PBT will evaluate the establishment of a regional pCAM refining hub. Under the MoU PBT will provide its in-house technology and expertise, and Poseidon will provide typical specifications and anticipated production volumes of nickel concentrate from Poseidon’s projects as potential base feed for the proposed refinery, should Poseidon decide to develop its projects and supply concentrate to the proposed refinery.
The ultimate objective is for the parties to execute a Definitive Agreement that will detail how the parties can work together to fund and develop a regional supply chain from mine to concentrate, to an intermediate mixed nickel cobalt hydroxide product that will be further refined in PBT’s refinery using PBT’s patented technology to produce products suitable for the battery manufacturing markets.
The MoU notes that obligations of the parties under the MoU are not binding or enforceable unless and until a Definitive Agreement has been entered into. The MoU has been drafted to not hinder any other transactions or processes for either PBT or Poseidon to bring their respective products to market, either currently underway or future opportunities.
