First Cobalt strikes milestone offtake deal with London-based cobalt trader over future Ontario refinery production

First Cobalt Corp (CVE:FCC) (OTCQX:FTSSF) (FRA:18P) announced a key milestone in its plans to bring North America’s only permitted cobalt refinery in Ontario back into life - inking an offtake deal with one of the "most knowledgeable" cobalt traders in the world.  The company has agreed a flexible, long-term, offtake agreement with London-based Stratton Metal Resources Ltd over the sale of up to 100% of annual cobalt sulfate production from the refinery.  READ: First Cobalt strikes amended loan deal with giant Glencore; to pay off debt with shares  "Stratton Metals are among the most knowledgeable cobalt traders in the world, with a network of relationships in every major market," Trent Mell, the CEO of First Cobalt said in a statement.  "This sales arrangement is a key milestone for the company as firming up commercial arrangements supports the financing process for the refinery expansion. Refinery commissioning remains on schedule for October 2022. We look forward to working with Stratton to supply the world's most sustainable cobalt to the electric vehicle market." The deal is flexible in that it allows First Cobalt to also strike offtake contracts with original equipment manufacturers (OEMs) and suppliers, thus reducing the amount for Stratton Metals. This five-year offtake contract matches the expected term of a project debt facility currently being negotiated, as well as long-term arrangements for refinery feedstock. The sale price will be based on the prevailing market price at the time of shipment. Earlier this year, the company agreed a five-year cobalt hydroxide feed purchase deal with Glencore AG and IXM SA. The offtake deal with Stratton represents a long-term partnership that will assist First Cobalt as it enters the cobalt sulfate market and qualifies its product with various cathode and battery cell manufacturers, it said. Stratton Metals will be paid a fee relating to the cobalt sulfate sales made under this agreement. The company's formerly operating cobalt refinery sits north of Toronto and could produce over 25,000 tonnes of cobalt sulfate per year from third-party feed. Cobalt refining is a critical component in the development and manufacturing of batteries for electric vehicles (EVs). Between 1996 and 2015, it produced cobalt, nickel, and silver and First Cobalt is expanding and modifying it to refine third party cobalt hydroxide intermediate product into a high-purity, battery-grade cobalt sulfate suitable for lithium-ion batteries. Today, around 80% of cobalt sulfate is made in China and there is no production in North America. In December 2020, the Government of Canada and the Government of Ontario announced a joint C$10 million investment in the First Cobalt Refinery to help accelerate commissioning and expansion. First Cobalt aims to market a premium brand of cobalt that is ethically sourced and has one of the lowest (and potentially the lowest) greenhouse gas emissions in the industry. Contact the author at giles@proactiveinvestors.com