Chalice Mining (ASX: CHN) has entered into a non-binding Memorandum of Understanding (MoU) with powerful Japanese trading house Mitsubishi Corporation in relation to development of the company’s 100%-owned multi-element Gonneville project in Western Australia.
The MoU sets out a framework for ongoing collaboration and assistance between Chalice and Mitsubishi in relation to development of the project, with the aim of exploring the possibility of further joint engagement with Chalice – including a potential binding partnership following completion of the Gonneville Pre-Feasibility Study (PFS), which is expected to be completed by mid-CY25.
Chalice Managing Director and CEO, Alex Dorsch, said the MoU gives Chalice and Mitsubishi time to collaborate and align more closely on key project development parameters such as determining the optimal flowsheet and product mix, which will be the primary driver of project scale, staging and development plan currently being refined through the PFS.
“We are very pleased to have executed the MOU with Mitsubishi, which marks the beginning of a foundational, long-term relationship. Mitsubishi’s involvement in the Gonneville Project follows extensive due diligence and discussions over the past ~12 months and highlights the longer-term strategic nature and value of the Project as a potential large-scale, long-life and low-carbon source of critical minerals for Western markets.
“From the outset of the strategic process, Mitsubishi was always considered one of the most impressive and best suited strategic partners for the Gonneville Project, based on its decades-long development, operational and trading track record.
“In the context of key ongoing PFS workstreams and optimisations, the MOU structure is favourable, as it provides a framework for collaboration for both parties during the PFS and allows for the progression and de-risking of the Project prior to having good faith discussions around a potential joint arrangement and investment following the completion of the PFS.
“We have built a collaborative relationship through the process over the last 12 months, and we have strong strategic, cultural and operational alignment with Mitsubishi. We are excited to work together over the next phase of Project studies towards delivery of the PFS in mid-2025 and targeted Final Investment Decision in late 2026.”
Mitsubishi is one of the leading natural resources investors in the mining industry, with significant long- term investments and joint ventures in tier-1 assets globally. It brings a broad range of capabilities, experience and relationships, including strong connections to the Japanese Government and commercial banking groups which Mitsubishi has historically worked closely with to facilitate low-cost funding for its joint venture projects.
Mitsubishi Corporation General Manager of the Battery Minerals Office, Kota Ikenishi, said the Gonneville PGE-Ni- Cu-Co project has the potential to become a large-scale, globally significant critical minerals asset, and its US IRA-qualifying suite of metals could have a strategic importance for Japan in the future.
