Clancy lays claim to licences next to ‘world famous’ cobalt mine in Morocco
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Minnow Clancy Exploration has got its hands on licences it says sit right next to a “world famous” cobalt mine in Morocco.
Clancy (ASX:CLY), which has a market cap of just $9 million at a share price of 0.3c, has signed a deal to acquire three cobalt licences via the staged acquisition of Atlas Managem S.A.R.L.
“This is an extraordinary and tremendous opportunity for Clancy to acquire a big package of prime exploration tenements for cobalt, nickel, copper and gold in Morocco,” non-executive chairman David Lenigas told investors.
“To sign this deal for 32 sq km right next to the world famous Bou Azzer cobalt mine is a significant deal for Clancy.”
Bou Azzer is currently one of the world’s only operating primary cobalt mines and has been in operation since the 1930s.
There are more than 50 deposits in the district that have been mined over 75 years with production of over 100,000 tonnes of cobalt.
“People have talked about Bou Azzer for awhile and a lot of issue has been trying to get some ground near it and we managed to put our foot on it,” non-executive director Scott Patrizi told Stockhead.
“To pick up some ground immediately adjacent to it, that’s a massive coup.”
Around 98 per cent of the world’s supply of cobalt comes from copper and nickel production, with 15 mines representing half of the world’s supply.
Cobalt contributes up to 60 per cent of the value of lithium ion batteries, which in turn accounts for over 50 per cent of demand for cobalt.
The expanding electric vehicle market is one of the key drivers of lithium ion battery demand.
Bloomberg forecasts 35 per cent of vehicles sold by 2040 will be electric, which currently only account for roughly 1 per cent of global sales.
Clancy has handed over $25,000 for 60 days to conduct due diligence on the three licences.
All up the deal will cost the company $1 million in cash and the issue of 610 million shares, spread out over five stages.
Completion of the deal will see Mr Lenigas shift to an executive chairman role.
Mr Lenigas said Clancy will start work immediately as part of its due diligence.