British exploration and development company Critical Mineral Resources (CMR) announced on Monday the signing of a binding heads of terms agreement to earn-in to the Zagora Cobalt Project in Morocco.
Located around 25 kilometers southwest of the city of Zagora, the Zagora Cobalt Project is showing promising potential for cobalt mineralization at the surface, said the company in a press release.
Initial technical assessments have unveiled promising cobalt mineralization, with samples determining the content as 1.15% Cobalt. This is equivalent to approximately 6.5 grams per tonne of gold or 4.7% copper at current metal prices.
CMR highlighted the project’s “strategic” location, in close proximity to the Bou Azzer district, where cobalt is actively mined by the Managem Group, which supplies major automakers like BMW Group and Renault Group.
With Bou Azzer’s operations dating back to the late 1920s, the pressure for new cobalt discoveries is mounting to meet the escalating demand for this critical mineral, added the statement.
CMR said that this context “will likely drive interest in all new Moroccan cobalt projects and discoveries.”
Atlantic Research Minerals (ARM), a subsidiary of CMR, is set to invest substantial funds into the Zagora Project, facilitating the development of a JORC standard Scoping Study.
The project will then progress toward a pre-feasibility study and a definitive feasibility study, contingent on positive outcomes. ARM’s stake in the project will initiate at 20-25%, potentially increasing as the project achieves defined development milestones, ultimately reaching 70% upon delivery of a definitive feasibility study.
Given the surging demand for high-performance Nickel Manganese Cobalt (NMC) batteries, largely propelled by the rapid growth of electric vehicles and battery storage, the statement underlined that the global cobalt outlook remains highly promising.
CMR highlighted Morocco’s political stability and its trade relations with the European Union and the United States, positioning it as a highly sought-after trading partner.
“Morocco has continued to gain significant recognition from global organizations as a battery commodity and materials hub,” said the statement.
CMR’s Chief Executive Charlie Long expressed enthusiasm over the agreement, describing it as “another milestone in our Moroccan journey.”
“This agreement strengthens our position in the critical minerals sector,” he said, adding that the near surface mineralization at the Zagora project is “exciting.”
Source: Marocco World News