Pacific Rim Cobalt Issues Letter from the President
Pacific Rim Cobalt Issues Letter from the President
Highlights:
Year to date accomplishments and future milestones.
Indonesia: A Nickel Powerhouse
The case for nickel.
Vancouver, B.C. – July 17, 2019 – Pacific Rim Cobalt Corp. (the “Company” or “Pacific Rim Cobalt”) (CSE:
BOLT) (OTCQB: PCRCF) (FRANKFURT: NXFE) is pleased to provide th e following update from its President
and CEO, Ranjeet Sundher.
“Dear Shareholders, I would like to take this opportunity to th ank you for your continued support as we
advance our 100% controlled Cyclops laterite nickel‐cobalt proj ect, with the eventual goal of being part
of cathode material supply chain for the burgeoning battery manufacturing sector.
Indonesia has recently enjoyed an inflow of heavy investment fr om multinational industry giants into its
nickel mining and manufacturing sectors and has plans to become a word‐class hub for lithium battery
and electrical vehicle (EV) production. Most recently, on June 27, 2019 Toyota Motor Corp made a
commitment to invest $2B USD to develop electric vehicles in Indonesia. Given the country’s proximity to
the world’s largest battery manuf acturer, we’re as confident as ever in our choice of jurisdiction for our
flagship project.
The Cyclops property, with Minin g and Environmental permits in place, was acquired in October 2017
following extensive due diligence on over 40 projects across Indonesia. Strong exploration results to date
continue to confirm our initial observations of the project's exceptional potential.
The project benefits from excellent infrastructure providing ease of access to a local skilled workforce and
is adjacent to deep tide water.
O v e r t h e p a s t 1 8 m o n t h s , w e h a v e r o l l e d o u t a c o m p r e h e n s i v e , m ulti‐faceted exploration and
development program at Cyclops. This includes the launch of ke y initiatives within Indonesia and China,
reinforcing the Company’s plan to become a key regional player in the battery metals supply chain.
While the scale of work completed to date is beyond the scope of this update, I’m very pleased to provide
the following highlights:
Commenced the first work program since historical operators com pleted 856 holes and 26 test
pits on Cyclops.
Opened up a business development office in Shanghai, establishing a full‐time presence in China.
Signed a preliminary offtake agreement with China’s top battery metals supplier, Beijing Easpring
Technology Material Co. Ltd.
Completed over 60 drill holes to date which consistently demonstrate strong mineralization
occurring from surface (up to 12m depth) with highlight intercepts such as; including intervals of;
6 metres of 2.28% Ni and 0.03% Co, 5 metres of 1.91% Ni and 0.03% Co, and 6 metres of 1.78% Ni
and 0.06% Co.
The Company’s processing partner completed successful phase 1 a nd have commenced phase 2
of a bench‐scale scoping program for the selection of a suitable process for recovery of nickel and
cobalt from laterite material.
Completed Nine test pits, ranging in depth from 1.7 metres to 6 metres, confirming elevated nickel
mineralization.
Looking ahead
Shareholders can look forward to a full slate of activity for t he year ahead, as we continue to build on
strong results delivered by the ongoing exploration program.
Upcoming milestones are expected to include:
Sample production of battery‐grade nickel and cobalt cathode material for marketing purposes.
Develop process flow design criteria for subsequent mini‐pilot/pilot plant testing.
Meet with representatives from Beijing Easpring with the goal of finalizing the preliminary offtake
agreement announced on July 11th, 2018.
Produce a maiden 43‐101 resource estimate.
I’m proud of what we have accomplished to date on our Cyclops project. With offices in Vancouver,
Shanghai and Indonesia, our experienced team of international directors and employees continue to work
hard with a mission to unlock shareholder value through prudent project selection and development.
Finally, I would like to provide the following as a backdrop in our pursuit of building shareholder value in
a region that is quickly becoming a key global hub in the race for battery metals security.
Indonesia: A Nickel Powerhouse
Indonesia is one of the world's largest sources of nickel produ ction by nation, and rich with deposits of
the metal, many of which have yet to be effectively exploited.
By reforming laws and opening up the sector to foreign investors, the country is seeing a significant boost
to their economies and growing influence on the global stage.
Plans are afoot to revise labor laws and open various parts of the economy to foreign involvement. These
moves are expected to make the country attractive to investors, whose money can drive the development
of the manufacturing base.
As a result, multinational industry powerhouses such as Honda, Vale, China’s Tsingshan Group, Hyundai
and Hanwa have been pouring billions of dollars into the country in an effort to gain strategic advantage
in the battery metals supply chain.
The combination of the aforementioned fundamentals is placing Indonesia in the enviable position of
potentially becoming the largest source of battery metals outside of Africa.
This rapidly evolving investment environment has also created promising potential for Pacific Rim Cobalt
Corp, being an early mover and uniquely positioned geographically against our peers across the globe.
Also notable is Cobalt 27 Capital Corporation’s (TSX.V: KBLT) ( OTCQX: CBLLF) recent acquisition of
Highlands Pacific Limited giving it an 8.56% interest in the $2 .1 billion Ramu nickel mine located on the
north coast of Papua New Guinea.
Indonesia’s dominant source of nickel is laterite deposits whic h are composed of long, shallow tabular
bodies. Pacific Rim Cobalt Corp’s Cyclops project is such an occurrence.
The country’s large nickel laterite ore reserves ‐‐ prized for nickel pig iron used in stainless steel production
‐‐ are also a vital ingredient for lithium‐ion batteries used to power electric vehicles.
Notable laterite projects in the region include the Cobalt 27 / MMC $2.1‐billion Ramu nickel mine in Papua
New Guinea at 1.0 per cent nickel, Eramet's Weda Bay at 1.36 pe r cent nickel and Antam's Gag island at
1.63 per cent nickel, both in Indonesia.
The Case for Nickel
Nickel is a key ingredient used in the production of batteries found in consumer electronics, electric
vehicles and renewable energy storage systems.
One of the major drivers behind demand for batteries has been a global pivot toward renewable energy
sources, including a major transformation toward electrification underway in the automotive industry.
Nearly every major auto manufacturer on the globe has been pushi n g t h e E V a g e n d a i n a n e f f o r t t o
compete in the race for electric vehicle domination.
The battery supply chain is dominated by lithium‐ion batteries requiring Nickel‐Manganese‐Cobalt (NMC)
chemistries. Due to fierce competition and the need to drive prices lower to meet mass consumer
demand, battery manufacturers are constantly looking to improve economies of scale. This drive for cost
efficiency is resulting in ever‐increasing nickel content in battery chemistries. The industry is in the
process of moving from composition of 5‐3‐2 NMC to 6‐2‐2 NMC, and eventually 8‐1‐1 NMC.
Though tensions over President Donald Trump’s trade wars have softened metal prices in the short term,
longer‐term needs are essentially immune to presidential policies. The exponential increase in nickel
content in batteries, combined with a global push toward electr ification and the rise of the Asian middle
class, is sure to keep demand buoyed for decades to come.
Anthony Milewski, CEO of Cobalt 27, in his article titled “Nick el – The Often Forgotten Battery Metal.”,
states “nickel is further differentiated from other battery met als in its inability to respond quickly on the
supply side due to the fact that bringing on a new large scale nickel mine can often run in to the billions
of dollars. Combine that with the fact that nickel projects had massive cost overruns in the last cycle and
you have the real prospect that investors will not provide the capital to build new nickel mines any time
soon thus ensuring a tight nickel market in years to come.”
Once again, thank you for your continued support. I look forwa rd to providing continued updates as the
year progresses.”
On behalf of the Board of Directors,
Pacific Rim Cobalt Corp.
Ranjeet Sundher
President & CEO
National Instrument 43‐101 Disclosure
The technical content of this news release has been reviewed an d approved by Mr. Garry Clark, PGeo,
independent director of Pacific Rim Cobalt and a Qualified Pers on as defined by National Instrument 43‐
101.
About Pacific Rim Cobalt
Pacific Rim Cobalt is a Canadian‐based exploration company focused on the acquisition and development
of production grade nickel and cobalt deposits, key raw material inputs for the growing lithium‐ion battery
industry. Visit https://pacificrimcobalt.com/ to find out more.
Pacific Rim Cobalt Corp.
Ranjeet Sundher – President and CEO
(604) 922‐8272
Steve Vanry – CFO & Director
(604) 922‐8272
Sean Bromley – Director & Investor Contact
(778) 985‐8934
Reader Advisory
This news release may contain statements which constitute “forw ard‐looking information” that are subject to risks
and uncertainties. All statements herein, other than statements of historical fact, are to be considered forward‐
looking, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its
directors, or its officers with respect to the future business activities of the Company and with respect to the results
of exploration and prospective plans in regards to the Cyclops project. The words “may”, “would”, “could”, “will”,
“intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company,
or its management, are intended to identify such forward‐lookin g statements. Although the Company believes the
expectations expressed in such forward‐looking information are based on reasonable assumptions, such information
is not a guarantee of future performance and actual results or developments may differ materially from those
contained in forward‐looking information. Information provided in this document is necessarily summarized and may
not contain all available material information. Although Pacific Rim Cobalt has attempted to identify important
factors that could cause actual results, performance or achievements to differ materially from those contained in the
forward‐looking statements, there can be other factors that cau se results, performance or achievements not to be
as anticipated, estimated or intended. Factors that could cause actual results to differ materially from those in
forward‐looking information include, but are not limited to, fl uctuations in market prices, success of the operations
of the Company, continued availability of capital and financing and general economic, market or business conditions.
There can be no assurances that such information will prove accurate and, therefore, readers should not place undue
reliance on forward‐looking statements. The forward‐looking statements in this news release are made as of the date
of this news release, and the Company does not assume any oblig ation to update any forward‐looking information
except as required under the applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.