Cobalt swap
As per the terms of the cobalt swap, General Nickel Company (GNC), Sherritt’s Moa JV partner, has agreed to assume certain liabilities owed to Sherritt by Union Cubapetroleo (CUPET) and Energas SA in order to fully repay outstanding amounts over the five-year period. GNC will in turn enter into payment agreements of an equivalent amount to the liabilities with the Cuban partners. This includes the Energas conditional sales agreement receivable of C$332.4 million and trade accounts receivable from CUPET of C$29.5 million.
Beginning in 2023, the Moa JV expects to distribute a maximum of 2,082 tonnes of finished cobalt annually – or approximately 60% of current production (100% basis) – to the joint venture partners. Accordingly, Sherritt expects to receive a maximum of 1,041 tonnes of finished cobalt dividends per year in respect of its 50% share of the Moa JV.
GNC will redirect its 50% share of the total Moa JV…
