Idaho Champion (CSE:ITKO, OTCQB:GLDRF) Gold Mines Canada Inc has said it is set to strike a deal with a Far East-based battery group to advance its four strategic cobalt projects in Idaho, USA.
The junior explorer has inked a non-binding memorandum of understanding (MOU) with the battery company, which will remain confidential under the non-disclosure agreement (NDA), envisaging a joint venture deal with a multi-phase exploration program worth US$5 million over three years.
The undisclosed company could earn a 30% interest in one of Idaho's four cobalt assets.
"We are pleased to have efficiently found a non-dilutive alternative for Idaho Champion and its shareholders to add value to what was originally considered a non-core asset," said Jonathan Buick, Idaho Champion's CEO in a statement.
READ: Idaho Champion initiates strategic review of its property portfolio to maximize shareholder value
Buick added: "With cobalt trading at a three-year high, the United States government including cobalt on its critical minerals list, and Jervois Mining commencing cobalt production on their ICO project, there is a considerable renewed interest in Idaho as a mineral exploration region.
"Battery Co. is keen to work with groups that have cobalt assets in ethical and politically stable jurisdictions, beyond existing larger alternatives. We will work diligently towards a definitive agreement, so we can begin the geologic discovery."
Earlier in April, the company announced the start of an internal strategic review of its Cobalt package and its wholly-owned Baner Gold project in Idaho.
The latest MOU move is further supported by a recent move by the US government of adding cobalt to the list of covered items under the Defense Production Act, said the company.
The firm's cobalt property package encompasses 622 claims along strike and near well-developed cobalt projects along the Cobalt Belt. It comprises:
- Victory project DUP claims: about 6 km south of the Blackbird Mine
- Fairway project SC claims: about 3 km east of the town of Cobalt and 1 km north of the Blackpine copper occurrence
- Twin Peaks project TP and Badger claims: located on the Twin Peaks copper mine, 3km from Electra Battery Metals' Iron Creek
- Ulysses project IP and GS Claims: about 2 km north of the Ulysses mine
"Idaho Champion and Battery Co. have agreed to work in good faith to execute a definitive agreement within nine months of the signing of the MOU. The MOU is considered to be non-exclusive, non-binding, and remains subject to negotiation," the company added.
Contact the writer at giles@proactiveinvestors.com