Cobalt Blue Holdings Ltd (ASX:COB) has welcomed LG International (LGI) as a major shareholder to its register with a 6.19% holding.
The shareholding is a result of the recently outlined strategic partnership with LGI, the resources investment arm of LG Corporation.
READ: Cobalt Blue a major ASX success story in past 12 months … and it has a long way to run
The company issued 7.09 million shares to LGI priced at $1.10 raising $7.8 million.
The partnership with LGI aimed at sourcing long-term supplies of battery-ready cobalt from the Thackaringa Cobalt Project in New South Wales.
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.
Focused on pre-feasibility study completion this quarter
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.