Arizona Tribune - Chilean Cobalt Corp. Announces Extension of USD $317 Million Letter of Interest From US Exim Bank

The original LOI was issued in July 2024 and falls under EXIM's China and Transformational Exports Program ("CTEP"). CTEP is aimed at supporting US companies facing competition from the People's Republic of China ("PRC") in strategic sectors such as renewable energy, storage, and efficiency. The proposed financing may also qualify for special consideration under Section 402 of EXIM's 2019 reauthorization (P.L. 116-94), which could potentially include extended loan tenors and drawdown, and/or other flexible and competitive loan terms.

With the PRC currently dominating the global cobalt market - a critical mineral essential for lithium-ion batteries and advanced superalloys - EXIM continues to support the key role La Cobaltera is positioned to play in building a secure, Americas-based cobalt supply chain. EXIM financing also aligns with Chilean Cobalt's strategy to support downstream processing within the United States, including a non-binding three-party strategic partnership with Glencore AG and US Strategic Metals, each supported by a separate non-binding LOI for project off-take and domestic processing of critical minerals.

The contemplated funding package would cover a majority of the anticipated construction and development capital required for Phase 1 of the La Cobaltera project, which targets the cobalt-copper oxide zones. Additionally, subject to certain early drawdown conditions, a portion of the financing may also be used to advance the project's Definitive Feasibility Study.

While Chilean Cobalt has made good progress over the past 12 months, depressed and volatile cobalt prices have forced the Company to take a more cautious development approach. Looking ahead, cobalt market dynamics are shifting, and Chilean Cobalt anticipates submitting a formal application to EXIM during the next 12 months. Upon submission, EXIM will proceed with its final due diligence and underwriting process to evaluate a potential funding commitment.

Concurrently, Chilean Cobalt continues to pursue additional US government support and strategic financing, including EXIM's new Supply Chain Resiliency Initiative ("SRCI"). This initiative offers financing for international critical minerals projects that have signed off-take agreements with US companies, helping secure access to critical minerals from allied countries such as Chile. Under SCRI, EXIM may finance a percentage of project capital expenditures proportional to the share of production committed to US-based processing or final off-take - supporting both domestic industry and global supply chain diversification.

This press release does not constitute an offer or sale of, or the solicitation of an offer to buy, securities of the Company nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Chilean Cobalt Corp.

Chilean Cobalt Corp. is a US-based and US-listed critical minerals exploration and development company focused on the La Cobaltera cobalt-copper project in northern Chile, one of the world's few primary cobalt districts. Chilean Cobalt is committed to creating ecological and social value for all stakeholders; economic value for Chile and the Chilean communities in which it operates; and financial value for its shareholders.

Safe Harbor Statement

This news release contains statements that involve expectations, plans or intentions (such as those relating to future business or financial results) and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as "may," "should," "expect," "anticipate," "believe," "estimate," "intend," "plan" and other similar expressions. Examples of forward-looking statements, include, among others, statements the Company makes regarding its ability to enter into a definitive agreement with EXIM for debt funding as provided for in the LOI, approval for special consideration under Section 402 of EXIM's 2019 reauthorization (P.L. 116-94), approval for consideration under EXIM's SRCI, its ability to enter into definitive agreement with Glencore and/or USSM for strategic partnership(s) as provided for in the LOI(s), ability to establish "Proven" or "Probable" Reserves, as defined by the SEC under Industry Guide 7, through the completion of a Definitive Feasibility Study for the minerals that the Company seeks to produce and the inherent risks of mining, exploration, development, and processing operations that may negatively impact the business. Consequently, our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the Company. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

CONTACTS:

Chilean Cobalt Corp.
Duncan T. Blount
Chairman & CEO
[email protected]

SOURCE: Chilean Cobalt Corp.

View the original press release on ACCESS Newswire

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