Headquartered in Pennsylvania, USA, "Chilean Cobalt Corp." (Chilean Cobalt Corp., "C3") recently announced that it has received a non-binding Letter of Intent (LOI) from the U.S. Export-Import Bank (EXIM Bank). The LOI pertains to a potential debt financing plan of up to $317.4 million, with a loan term of up to 15 years, to finance the development of cobalt mines within C3's mining concessions, including the La Cobaltera cobalt-copper project located in the San Juan District of northern Chile, as well as other mining concessions in the area that the company may acquire.

This debt financing is part of the U.S. EXIM Bank's "China and Transformational Export Program (CTEP)", which aims to help American companies compete with China in the fields of renewable energy, energy storage, and efficiency.

Given China's dominant and controlling position in the market for cobalt, a key mineral in lithium-ion batteries and advanced high-temperature alloys, EXIM Bank's plan to fund C3's La Cobaltera cobalt-copper project supports the construction of the cobalt supply chain in the Americas and promotes the company's establishment of strategic partnerships in domestic processing in the United States.

The loan funds will finance almost all the expected construction and development work required for the first phase of C3's La Cobaltera project, focusing on the cobalt-copper oxide zone of the deposit. Additionally, subject to certain early drawdown conditions, these funds can also be used to finance the final feasibility study.

C3's La Cobaltera project is located in the Huasco Province of the San Juan District (Atacama III Region) in northern Chile, with 100% owned and unencumbered mining rights covering 2,635 hectares, making it the largest mining area in San Juan. The project includes cobalt-copper oxide and sulfide resources, as well as other potential mineral resources.

La Cobaltera has a long history of mining activities, with continuous cobalt mining from the mid-19th century until 1944, with cobalt grades ranging from 1% to 15%, suitable for both open-pit and underground mining. After the end of World War II, cobalt production gradually decreased, but the resources were not exhausted. In 2016, copper was mined in this area using open-pit methods.

 

After C3 formally applies for debt financing, EXIM Bank is expected to complete due diligence on the company and other required underwriting analysis to determine its final financing amount.

C3 is a critical mineral exploration and development company based in the United States and listed on a U.S. stock exchange, focusing on the La Cobaltera cobalt-copper project, which is located in the historically productive San Juan District of northern Chile, one of the few globally renowned native cobalt mining areas in the world.