US-based exploration company Chilean Cobalt (C3) has announced a letter of intent (LoI) with commodities major Glencore regarding an offtake agreement and strategic partnership for its La Cobaltera project, in northern Chile.
The LoI contemplates C3 supplying 100% of its cobalt and copper production for an initial five years to Glencore.
The sales price will be based on an agreed upon pricing formula linked to future prevailing market prices.
The majority of copper and cobalt intermediate product stream will be shipped into the US and or US free trade agreement countries.
This is in line with C3's ongoing discussions with third parties regarding a strategy to establish an US-centric cobalt supply chain and works to satisfy C3's own conditions precedent regarding the company's potential strategic project financing.
In addition, Glencore is expected to provide strategic support for the advancement of C3's La Cobaltera Phase 1 project and collaboration on greenfield solutions for domestic US processing and refining into battery materials and/or metal products.