Cobalt Blue Holdings Ltd (ASX:COB) has confirmed its partnership with LG International (LGI) after issuing just over 7 million shares.
Last month, Cobalt Blue entered a partnership with LGI aimed at sourcing long-term supplies of battery-ready cobalt from the Thackaringa Cobalt Project in New South Wales.
READ: Cobalt Blue partners with LG to source cobalt for the lithium-ion battery market, shares up
Importantly, the issue of the shares to LGI was part of a placement that raised $7.8 million in new funding.
One of the largest lithium-ion battery makers in the world
LGI is the resources investment arm of global giant LG Corp (KRX:003550) and will act in cooperation with LG Chem, one of the largest lithium-ion battery makers in the world.
LG Chem possesses strong technical leadership in the development of next-generation batteries, especially for fixed storage and electric vehicles (EVs).
Under the first mover partnership, LG will provide capital and technical assistance for Cobalt Blue to make a high-purity battery-grade cobalt sulphate from Thackaringa.
READ: Cobalt Blue a major ASX success story in past 12 months … and it has a long way to run
Thackaringa’s resource now stands at 72 million tonnes at 852 ppm cobalt, 9.3% sulphur and 10% iron for 61,000 tonnes of contained cobalt at a 500 ppm cut-off.
Cobalt Blue is working towards releasing results from its pre-feasibility study (PFS) by the end of the June quarter.