Corcel signs Papua New Guinea-Argentina MoU

Corcel plc has signed a memorandum of understanding for a proposed 50-50 joint venture to include its nickel-cobalt interests in Papua New Guinea.

RESTRUCTURE

Corcel and Shandong New Powder COSMO AM&T (NPC)’s JV company will be named Integrated Battery Metals (IBM).

The partners intend to create a Singapore-based JV comprising Corcel’s Mambare and Wowo Gap projects and the Doncella lithium project in Argentina.

The JV will pursue an “Asian-focused battery metals strategy” with direct links to offtake partners and end users. 

Both parties intend to list the new company in Singapore in the medium term.

The JV will comprise Corcel’s 41% interest in the Mambare nickel-cobalt project and its 100% interest in Wowo Gap nickel-cobalt project

NPC will add its 4.48% interest in Hanacolla S.A., owner of the Doncella lithium project in Argentina, with additional future lithium and other battery metal interests. 

Corcel aims to benefit from a $1.5 million carried interest at Wowo Gap, a 1.5% gross revenue royalty on Wowo Gap and will also nominate half the board of the JV.

The partners expect to sign the transaction in the coming weeks with completion conditional on Corcel’s Mambare partner’s pre-emption rights being waved and administrative approvals.  

“We believe this proposed PNG restructuring, with its associated carry, and an ultimate Singapore listing, is the best way to bulk up and ultimately unlock the significant value in our battery metals portfolio,” said executive chairman James Parsons.

DONCELLA

The Doncella lithium project is Hanacolla’s principal project in the Arizaro Salar in the Salta province, part of the Lithium Triangle, approximately 170km from Salta. 

The project consisting of 725km^₂ lithium salt brine style mineral tenements within the Salar de Arizaro Basin. 

Arizaro is the largest salar in Argentina and one of the most important in Puna Region.