Electra Battery Materials (TSX-V: ELBM; NASDAQ: ELBM) announced on Wednesday it will dispose of its non-core Canadian assets while retaining royalty interests in the properties.
Under a 2021 share purchase and option agreement, junior Kuya Silver (TSXV: KUYA) already had the right to earn up to 70% of Electra’s Silver Kings joint venture properties in Ontario. Now, Kuya can earn up to 100% by making a $1 million payment in cash or shares by Jan. 31 this year.
“Our initial agreement with Kuya was designed to allow us to maximize shareholder value for our exploration assets in Ontario, given our primary focus on recommissioning North America’s first cobalt sulphate refinery,” Trent Mell, Electra’s CEO said in a statement.
Kuya Silver’s planned acquisition of Electra’s interest in the Silver Kings joint venture properties will grant the miner ownership or exclusive rights to roughly 166 sq. km in Ontario’s cobalt-silver district.
“Although Kuya Silver remains focused on its flagship Bethania silver project in Peru, having this kind of scale in a mining-friendly jurisdiction like Ontario will differentiate the company from other single-project juniors,” President and CEO David Stein, said in a separate statement.
Electra Battery Materials is currently focused on developing an integrated battery materials complex in northern Ontario. The facility is expected to combine cobalt, nickel, and manganese sulphates production with the recycling of black mass material.
According to the company, the Electra Battery Materials Park will be North America’s only fully integrated, localized and environmentally sustainable battery materials plant.
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