Cobalt Blue signs term sheet with STG Metals
- Cobalt Blue executed a non-binding term sheet with Switzerland's STG Metals for cobalt sales.
- Following the announcement, Cobalt Blue stock was unchanged at $0.058.
- The deal aims to secure early sales while qualifying battery products for final investment decisions.
Cobalt Blue Holdings (ASX:COB) executed a non-binding term sheet with Swiss commodities trading firm STG Metals GmbH for cobalt sales from its planned Kwinana Cobalt Refinery.
The agreement covers the sale of standard grade cobalt metal rounds containing over 99.8% cobalt, contrasting with the refinery's parallel plans to produce 2,000 tonnes of cobalt contained in cobalt sulphate for battery markets.
The term sheet creates binding obligations on both parties regarding negotiation conduct and resource commitment towards a definitive offtake agreement
Cobalt Blue CEO Dr Andrew Tong said, “Combined with our binding feedstock agreement with Glencore and product qualification work at the Broken Hill Technology Centre, we are continuing to build the commercial foundations required to support a Final Investment Decision.”
Under the proposed refinery plans, the Western Australia facility aims for a Stage 1 capacity of roughly 3,000 tonnes per annum of contained cobalt.
Cobalt Blue stated that the transaction is expected to advance commercial pathways towards a Final Investment Decision alongside existing feedstock arrangements.
Following the announcement, the Cobalt Blue Holdings share price was unchanged at $0.058.
The company focuses on developing midstream processing capabilities in Australia to supply refined cobalt metal for advanced manufacturing, defence, and battery supply chains.
The project aims to establish Australia's first dedicated midstream cobalt refinery, complementing a prior May 2025 feedstock agreement with Glencore.
