Pacific Rim Cobalt Provides Update to Shareholders on 2018 Progress
Pacific Rim Cobalt Provides Update to Shareholders on 2018 Progress
V A N C O U V E R , B r i t i s h C o l u m b i a , J a n u a r y 8 , 2 0 1 9 ( G L O B E N E W S I R E ) ‐ ‐ P a c i f i c R i m C o b a l t C o r p . ( t h e
“Company” or “Pacific Rim Cobalt”) (CSE: BOLT) (FRANKFURT: NXFE) (OTCQB: PCRCF) a Company
focused on developing nickel / cobalt opportunities in Indonesia is pleased to provide an update
detailing the milestones and growth initiatives accomplished throughout 2018 and strategic goals for
2019.
Project
During 2018 the Company’s primary objectives included exploration of its Cyclops Nickel‐Cobalt
Project, Jayapura Province, Indonesia (the “Project”). The Proj ect benefits from existing permitting
(Environmental and Mining), comprehensive and dependable local infrastructure, extensive historical
testing with over 850 drill holes and is strategically located on tide‐water in South‐East Asia.
Throughout 2018 Company representatives conducted extensive com munity consultation with local
stakeholders as well as regional government officials. These discussions resulted in overwhelming
support for the Company’s plans to advance the Cyclops Project.
In particular, finalization of the necessary agreements to access northern areas of the Cyclops Project
containing the majority of the historically identified minerali zed zones was achieved. While awaiting
access, the Company was able to complete topographic and photographic surveys, mapping, sampling
and a mini‐bulk sample within the mineralized zones. The Company also conducted a small‐scale
program in the previously unexplored far southern area of the site which yielded continued yet
reduced mineralization.
In November, Pacific Rim Cobalt was delighted to announce strong results from a mini‐bulk sample at
the Cyclops Project (for further information, please refer to the Company’s announc ement of
November 15, 2018). The promising results bolstered the Company’s long‐held views that the shallow
nature of the mineralization lends itself to low‐cost, logistically straightforward drilling.
The Company is currently drilling and extracting additional mini bulk samples for further metallurgical
testing.
Partners
During July 2018 Pacific Rim Cobalt entered into a preliminary offtake agreement with Beijing Easpring
Material Technology Co., Ltd. (“Easpring”), a leading specialized supplier of cathode material for
lithium ion batteries to industry giants such as Samsung, Sony, Panasonic, SK Continental and BYD (for
further information, please refer to the Company’s announcement of July 11, 2018). Easpring engages
in the research, development, production and sale of energy mat erials and is recognized as a leader
i n i t s i n d u s t r y , s u p p l y i n g f i v e o f t h e w o r l d ’ s s i x l a r g e s t l i t hium battery manufacturers. Easpring’s
purchasing director, Jashon Guan, commented that their partners hip with Pacific Rim Cobalt is “an
important part of Beijing Easpring’s strategy”.
Processing
In July, the company engaged an extractive technology and miner al process development partner to
assist in selecting the optimal process for recovery of cobalt and nickel from laterite material. The
results of initial scoping tests demonstrated the consistent ef fectiveness of our processing partner’s
leach technology in the extraction of value elements from the laterite samples tested (for further
information, please refer to the Company’s announcement of July 17, 2018).
Presence
In June Pacific Rim Cobalt estab lished an operations office in the capital city of Jayapura and a field
operations facility in Sentani, located 40km and 15km from the Cyclops Project respectively. These
outposts act as a suitable complement to the Company’s Jakarta office which handles exploration
support services as well as finance and accounting.
June also saw the opening of a development office in the Jing’an commercial district of Shanghai,
headed by James Foster. Shanghai was specifically chosen as Chi na is aggressively leading the world
in the battery sector and is e qually forceful in its determinat ion to build a robust supply chain. The
Shanghai office represents an opportunity to forge lasting rela tionships and strategic partnerships at
a time when Chinese companies are increasingly seeking to diversify their supply away from Africa.
The year ahead
The year ahead will prove to be even busier than 2018, as the c ompany aims to complete its maiden
resource estimate at Cyclops in accordance with National Instru ment 43‐101 Standards of Disclosure
for Mineral Projects , finalize studies and testing on processing options, undertake economic studies
to optimize its development plan, confirm the optimal processing method for the site’s resources and
commence formal negotiations with Easpring in relation to a binding offtake agreement for nickel and
cobalt sulphates. The Company is excited about the work ahead, a s s u r e d i n i t s a b i l i t y t o c o n t i n u e
meeting its key developmental mil estones and confident in its c apacity to create outstanding long‐
term value for its shareholders.
EV Metals Market Facts
Indonesia is outstandingly well‐placed to support burgeoning Ch inese demand and the move has
strong government support, with Indonesian Maritime Minister, Luhut Pandjaitan stating that
Indonesia will “become the main player in lithium batteries” and that it will “control the world
market”. January 2019 will also see the development of a US$4bn EV project on the Indonesian
island of Sulawesi, backed by a consortium of investors from China, Japan and South Korea.
Indonesia, rich in reserves of both nickel and cobalt is well‐p ositioned to supply the EV market.
Sumitomo Metal Mining also announced it will spend US$1.8bn to set up a nickel smelter in
Indonesia to meet the fast‐growing demand in the country.
Capital Economics expects cobalt prices to reach US$70,000 per tonne by mid‐2019 and US$80,000
by the end of 2020. The near‐universal view from market analysts is that global cobalt demand will
rise significantly in the coming years in tandem with the growt h of the EV market. According to
Bloomberg New Energy Finance, the boom in electric cars could more than quadruple current
demand for cobalt to over 450,000 tonnes per annum by 2030, fro m less than 100,000 tonnes in
2017.
According to BMI Research, annual nickel production should reach 2.9 million tonnes by 2027. CRU
Group predicts that by 2030, the required global supply of all types of nickel will increase by 55%.
Demand for commodities continues to be strong and is supported by solid economic performance
in major economies across the developed and developing world. As the scale of market penetration
and investment in the EV market increases in the coming years, the increasing demand for the
Company’s minerals is expected to rapidly accelerate. Anticipated future inflation and higher
interest rates also provide for a positive outlook on commodities as an asset class.
Global automaker investments in EVs now total more than US$90bn, with at least US$19bn
attributed to the US, $21bn to China and $52bn to Germany. CRU predict that EVs will account for
30% of sales by 2030, up from just 2% in 2020 – a staggering CA GR of above 30% over this period.
If EVs account for 30% of automobile sales, this will require an estimated additional 1.1 million tons
of nickel and 314kt of cobalt. From approximately 50,000 EV sales in 2012 and 3.2 million EV sales
in 2017, EVs are forecast to increase up to 36 million units in 2030. On average, each EV requires
an estimated 8kg of cobalt and 30kg of nickel. EV manufacturers are increasingly looking to secure
their procurement of essential ra w materials through the entire supply chain all the way down to
the level of the mine.
Chinese companies already control approximately 60% of the worl d’s lithium‐ion battery
manufacturing capacity. The country boasts a wealth of leading battery manufacturers, including
Beijing Easpring, BYD, CATL, Guoxuan High‐Tech, Lishen, CBAK, CALB and Wanxiang. China has
become a leader in the push for rapid EV take‐up, with new subsidies in China prioritizing pure EVs
with higher driving ranges and energy density – advantages prov ided by cobalt and nickel. New
energy vehicle sales already topped 1 million in 2018. This has led to an explosion in demand for
the raw materials supporting the EV market – the race to secure consistent and dependable cobalt
and nickel supply chains can be seen in the recent trend for Ch inese offtakers to enter into pre‐
production offtake agreements.
Pacific Rim Cobalt’s management in pleased to have established a presence in Indonesia; a
strategically‐located, ethical jurisdiction within the geographi c s p h e r e o f C h i n a , t h e d o m i n a n t E V
market player on the planet. Current market trends continue to support the Company’s strategy as it
undertakes its multi‐faceted growth initiatives in 2019.
As CEO of Pacific Rim Cobalt, I would like to take this opportunity to thank my fellow directors,
managers and employees for their hard work and their shared commitment to the Company’s success
i n a y e a r t h a t h a s b e e n m a r k e d n o t j u s t b y c h a l l e n g i n g m a r k e t conditions, but by extraordinary
progress towards realizing the Company’s potential. I would als o like to thank all of our investors for
their continued support.
About Pacific Rim Cobalt
Pacific Rim Cobalt is a Canadian‐based exploration company focu s e d o n t h e a c q u i s i t i o n a n d
development of production grade cobalt and nickel 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
Neither the Canadian Securities Exchange nor the Investment Industry Regulatory Organization of
Canada accepts responsibility for the adequacy or accuracy of this release.
FORWARD‐LOOKING STATEMENTS
Statements in this news release that are forward‐looking statem ents are subject to various risks and
uncertainties concerning the specific factors disclosed both here and elsewhere in Pacific Rim Cobalt’s
periodic filings with Canadian securities regulators. When used in this news release, words such as
“will”, “plan”, “estimate”, “expect”, “intend”, “potential”, “should,” and similar expressions, are
forward‐looking statements. Information provided in this docume nt is necessarily summarized and
may not contain all available material information.
Forward‐looking statements include, without limitation, statements regarding future‐oriented events
and other statements that are not facts. Forward‐looking statements are based on a number of
assumptions and estimates that, while considered reasonable by management based on the business
and markets in which Pacific Rim Cobalt operates, are inherentl y subject to significant operational,
economic and competitive uncertainties and contingencies.
Such forward‐looking statements should therefore be construed in light of such factors.
Although Pacific Rim Cobalt has attempted to identify important f a c t o r s t h a t c o u l d c a u s e a c t u a l
results, performance or achievements to differ materially from those contained in the forward‐looking
statements, there can be other factors that cause results, performance or achievements not to be as
anticipated, estimated or intended. There can be no assurance that such information will prove to be
accurate or that management’s exp ectations or estimates of futu re developments, circumstances or
results will materialize.
Accordingly, 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 Pacific Rim
Cobalt disclaims any intention or obligation to update or revis e such information, except as required
by applicable law or securities regulators, and Pacific Rim Cobalt does not assume any liability for
disclosure relating to any other company herein.