GME Resources signs with Stellantis

Nickel junior GME Resources has lined up a potential offtake deal with global automotive manufacturer Stellantis as it sounds out investors for a planned capital raising.

GME told the market it had signed a non-binding memorandum of understanding with Stellantis - the corporation behind several international car brands including Alfa Romeo, Chrysler, Citroen, Fiat and Maserati – for the potential future sale of nickel and cobalt from its NiWest project in Laverton.

Managing director Paul Kopejtka said he hoped the MOU was the first-step in a long-term partnership with the company.

“We’re very pleased with how our discussions have progressed and we now look forward to entering more detailed negotiations in parallel with the start of the Definitive Feasibility Study for the NiWest Nickel-Cobalt Project,” he said.

“A definitive agreement with Stellantis would be a critical step in being able to progress the NiWest Project through to commercial operations.”

GME entered a trading halt shortly after making the announcement, flagging a potential capital raising.

A term sheet sent to investors had new GME shares on offer via a share placement at 9.5 cents a pop.

It represents a 17.4 per cent discount on the company’s last trade price and a 14.7 per cent discount on its 5-day volume-weighted average price.

Canaccord Genuity and Ashanti Capital are leading the raise, which is seeking $3 million to advance drilling programmes and initial definitive feasibility study work.

The study is set to start for NiWest this month, with the project tipped to produce around 90,000 tonnes per annum of battery grade nickel and cobalt sulphate products once operational.

GME’s flagship is located in Western Australia’s Laverton district and sits adjacent to Glencore’s Murrin Murrin operation, considered the largest nickel-cobalt operation in Australia.

Fellow battery minerals aspirant Vulcan Energy Resources also won backing from Stellantis last month when it bought some $76 million worth of shares in the company.

Prior to today’s trading halt, GME shares last changed hands at 12 cents apiece.