Delecta shares surge following acquisition of cobalt-copper project in Nevada, USA
Date: Sep 18, 2018
Delecta Ltd (ASX:DLC) has entered into a binding option agreement to acquire a 100% interest in the high-grade Highline Cobalt-Copper Project in the State of Nevada, USA.
The Highline acquisition is part of Delecta’s diversification strategy aimed at capitalising on the demand for battery minerals such as cobalt, lithium and vanadium.
Delecta intends to utilise the 90-day option period to complete a geological review of the project and surrounding area and conduct an initial exploration program to identify and map mineralisation both at surface and within existing accessible workings.
This will enable the design and implementation of an exploration program to test the projects’ economic potential.
Battery minerals for an electric future
The rapid growth of electric vehicles is creating a significant demand for cobalt, causing tight supply, high prices and supply chain issues for this critical material.
Notably, the cobalt price has increased from US$23,000 per tonne in March 2016 to US$63,750 per tonne in August 2018.
Vanadium redox flow batteries (VRFBs) are also emerging as an efficient battery technology for utility-scale renewable energy storage.
It is worth noting that 3,000 tonnes of vanadium were used in batteries in 2017, twice as much reported in 2016.
