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Donald Trump has described the Inflation Reduction Act (IRA) as a "green scam" and vowed to repeal it after he returns to the White House in January.
Electra Battery Materials (NASDAQ, TSX-V: ELBM), until recently known as First Cobalt, announced on Wednesday that is disposing its non-core Canadian assets while retaining royalty interests in the properties.
The move is part of an amendment to a 2021 share purchase and option agreement with Kuya Silver (TSX-V: KUYA), involving silver and cobalt exploration assets in Canada’s Cobalt Camp.
“Our initial agreement with Kuya was designed to allow us to maximize shareholder value for our exploration assets in Ontario, given our primary focus on recommissioning North America’s first cobalt sulfate refinery,” Electra CEO Trent Mell said in the statement.
To exercise its right to acquire a 100% interest in Electra’s assets in Ontario, Kuya is required to make a payment in cash or in the equivalent value of its shares for C$1 million on or prior to January 31 this year.
The equivalent value of Kuya’s shares will be based on the share price equivalent to the earn-in volume weighted average price prior to the issuance, Electra said.
Kuya silver’s planned acquisition of Electra’s interest in the Silver Kings joint venture properties will grant the miner ownership or exclusive rights to roughly 16,600 hectares in Ontario’s cobalt-silver district.
“Although Kuya Silver remains focused on its flagship Bethania silver project in Peru, having this kind of scale in a mining-friendly jurisdiction like Ontario will differentiate the company from other single-project juniors,” Kuya CEO David Stein said in a separate statement.
Electra Battery Materials is currently focused on developing an integrated battery materials complex in Ontario. The facility is expected to combine cobalt, nickel, and manganese sulfates production with the recycling of battery black mass.
According to the company, the Electra Battery Materials Park will be North America’s only fully integrated, localized and environmentally sustainable battery materials plant.
