Vancouver-based Stillwater Critical Minerals (TSX-V:PGE) has inked a non-binding memorandum of understanding (MOU) with US Strategic Metals (USSM) to investigate critical minerals-related business opportunities.
Stillwater is advancing its flagship Stillwater West nickel–platinum group elements–copper–cobalt and gold project in the Stillwater mining district in Montana, US.
President Michael Rowley says the MOU has the potential to accelerate necessary engineering and metallurgical studies.
“Stillwater West is a special asset and almost entirely unique in the United States at a time when all stakeholders, from the federal government to industry and investors, recognise the overwhelming need for domestic supplies of the very critical minerals this project hosts,” Rowley says.
The US is focused on shoring up supply of the critical minerals needed for the clean energy transition and defence applications.
Currently, over 80% of the nation’s supply comes from foreign sources, including China.
The US Office of Fossil Energy and Carbon Management says over half of the US’ required supply of 43 of the 50 critical minerals and metals is imported.
This has prompted several government and industry bodies to roll out funding to encourage the development of a strong domestic supply of critical minerals to reduce dependence on other countries, particularly China, and create more jobs.
US Strategic Metals CEO Stacy Hastie says in particular the dearth of nickel and cobalt assets in the US has forced an expanded definition of domestic to include Canada and Australia.
“But we would expect projects located within the US to be prioritised for funding and support,” Hastie notes.
The MOU includes, but is not limited to opportunities related to marketing support, technical support, supply chain development, offtake and logistics, and potential strategic financing – including an equity or debt investment in Stillwater.
Rowley says it is an “excellent follow-on to our expanding base of government grant funding and partnerships with the US Geological Survey, Cornell University, and Lawrence Berkeley National Laboratory for CO2 sequestration, hydrogen production, and hydrometallurgical studies”.
“This MOU also reflects our broad alignment on ESG values and a shared vision for a large-scale, low-carbon American critical mineral supply chain based in an iconic and famously metal-rich US mining district that has produced critical minerals for over a century,” he says.
“In addition to our mutual connection with top-tier global miner Glencore, we expect this collaboration will further advance our mutual relationships with OEMs, vehicle/battery manufacturers, major mining companies and, perhaps most importantly in the near term, federal government agencies and legislators providing funding opportunities.”
USSM is a private, US-focused, critical minerals processing business based in Missouri.
In December 2023, USSM closed a US$230 million ($341.6 million) debt financing with sophisticated natural resources investor Appian Capital Advisory.
This was followed in August this year by a letter of intent from the US Export-Import Bank for a potential US$400 million loan for completion of the company’s phase-one multi metal proprietary processing and recycling battery metal hub.
Hastie says the company is building a large critical metal supply chain, providing reliable, traceable and conflict-free battery metals to the US.
“USSM aims to significantly expand production in the coming years and, as such, is successfully developing relationships with raw materials suppliers to allow it to meet rapidly growing critical metal demand,” Hastie says.
“Stillwater West fits this mandate extremely well, for its scale, grade and suite of critical minerals, nearly all of which the US is heavily reliant upon imports.
“Stillwater West is clearly one of the most important potential future sources of at least eight critical minerals and its development is perfectly in line with the US government’s mandate on securing domestic supply of these materials as well as USSM’s internal expansion mandates.”
The project hosts 1.6 billion pounds of nickel, copper and cobalt and 3.8 million ounces of palladium, platinum, rhodium, and gold.
Stillwater Critical Minerals, which has a market capitalisation of C$27.2 million ($29.5 million), says this positions Stillwater West as the “largest nickel resource” in an active US mining district and part of a “compelling suite” of nine minerals now listed as critical in the US.
To date, five Platreef-style nickel and copper sulphide deposits host the expanded resource, with all remaining open for potential expansion along trend and at depth.
Write to Angela East at Mining.com.au
Images: Stillwater Critical Minerals
