THE BOURSE WHISPERER: Broken Hill Prospecting (ASX: BPL) and Cobalt Blue Holdings (ASX: COB) announced a major strategic partnership with LG International (LGI) involving the companies’ Thackaringa cobalt project Joint Venture (TJV) near Broken Hill in New South Wales.
Broken Hill Prospecting explained LG International is the resources investment arm of LG Corporation, and is acting in cooperation with LG Chem, an entity with strong technical leadership in the development of next generation batteries in particular for fixed storage and electric vehicles (EVs).
LG Chem is the fourth largest EV battery maker globally.
Under the new partnership, LGI will provide capital and technical assistance for the TJV to make a high-purity battery grade cobalt sulphate.
Cobalt Blue Holdings has executed a binding term sheet with LGI to raise US$6 million (at A$1.10 per COB share) by Monday 16 April 2018.
“The strategic alliance with LGI is a major win for the Thackaringa cobalt project and our Board welcomes LGI’s partnership,” Broken Hill Prospecting managing director Trangie Johnston said in the company’s announcement to the Australian Securities Exchange.
“The LG Group brings valuable expertise in product development and other disciplines to the joint venture and is a significant milestone along the road to developing this world class cobalt resource.
“BPL’s commercial interest in the Thackaringa cobalt project is significantly advanced by the involvement of LGI and we look forward to working with both of our partners to deliver the project as expeditiously as possible.”