Centaurus Metals has executed a binding earn‐in joint venture term sheet with the Simulus Group (Simulus), covering the development of its Itapitanga Nickel‐Cobalt Project located in northern Brazil.
Image: Cobalt, fraction of a cathode, 2 x 2 cm. Photo courtesy of Jurii/Wikipedia.
Under the staged earn‐in Agreement, Simulus can earn up to an 80% interest in the project and will manage it through various study phases utilising its extensive in‐house capabilities for process design on nickel‐cobalt projects with the ultimate aim of delivering a low capital intensity process design under a Definitive Feasibility Study for a 250‐750ktpa project.
Centaurus will be free‐carried throughout the various exploration, resource evaluation and feasibility phases until project financing is arranged and a decision to mine is made.
Centaurus managing director Darren Gordon, said: “We are really excited to enter into this innovative joint venture agreement with one of the world’s leading nickel‐cobalt mineral development groups – which we believe is a genuine game‐changer for the Itapitanga Project. It demonstrates the quality of the Itapitanga asset and completely de‐risks the exploration and evaluation stage of the Project, with Centaurus free‐carried right through to a development decision.
“The partnership between Simulus and Centaurus on the Itapitanga Project brings together the combined strengths of a process specialist with extensive experience in managing nickel‐cobalt laterite projects through development and into production, and an exploration company with a deep knowledge of the operating environment in Brazil. This is a great partnership which should ultimately give us the best possible chance of delivering a highly profitable project in the shortest period of time to take advantage of the favourable market outlook for nickel and cobalt.
“Simulus is at the forefront of process development for battery grade nickel and cobalt sulphates worldwide, and this joint venture is a major coup for the Company and the Project, giving us a clear pathway through to development and production. We are looking forward not only to working with Simulus on the Itapitanga Project but also on new nickel‐cobalt project opportunities in Brazil as they arise.”
Simulus managing director Brett Muller, said: “We are extremely pleased to have the opportunity to get involved with Centaurus’ Itapitanga Project, which we believe has the potential to develop into a highly successful project for both companies.
“The Itapitanga Project is of particular interest for us given its relatively high nickel‐cobalt grades as well as other chemical characteristics that should lend the project to a process flowsheet with low process operating costs.
“We have a team with the required experience and resources to allow for the rapid evaluation of the project through the engineering phases and one which has worked on other nickel laterite projects in Brazil.
“When combined with Centaurus’ in‐country experience, we think we have all the makings of a strong partnership and great project.”
Source: Company Press Release