SMM11, June 26 / PRNewswire-FirstCall-Asianet /--, Pure Minerals Ltd (ASX:PM1 recently entered into a non-binding memorandum of understanding with Samsung SDI Co Ltd to provide nickel from the TECH project, which is 100% owned by its wholly-owned subsidiary Queensland Pacific (Queensland Pacific). Samsung SDI is a global leader in lithium-ion battery manufacturing and seeks to buy up to 6000 tons of nickel a year from the TECH project.
Stephen Grocott, CEO of Pure Minerals, said: "We are pleased to have the opportunity to work with Samsung SDI to become potential customers of the TECH project. We continue to receive attention from end users who see Pure Minerals as a potential component of their future supply chain, and so far we have signed memorandums of understanding with LG Chem and Samsung SDI.
The two companies have agreed to negotiate a binding off-take agreement for Samsung SDI to buy nickel from its proposed TECH project in Townsville, North Queensland. Under the MOU, Samsung SDI seeks to purchase a combination of mixed hydroxide precipitated (MHP) and final battery chemical sulfate form.
The initial term of the off-take agreement is 3 to 5 years, and the price of the product will be linked to the basic commodity price of the London Metal Exchange (or other mutually acceptable index), taking into account purity and specifications. PM1 and Samsung SDI will also work together to determine the product specifications that will be used in the off-take agreements acceptable to Samsung SDI and manufactured by PM1. The term of the memorandum of understanding is 12 months unless extended by mutual agreement.
