Deep Sea Minerals (CSE: SEAS) has entered into a non-binding letter of intent with Westwin Elements for a proposed joint development agreement to evaluate potential U.S.-based processing routes for polymetallic nodules.
The LOI establishes a framework for the parties to negotiate a definitive agreement following the company obtaining subsea mineral rights and all licenses, permits, and other regulatory approvals required to explore, recover, test mine, and harvest subsea polymetallic nodules.
In June, Deep Sea Minerals’ (CSE: SEAS) application submitted under the Deep Seabed Hard Mineral Resources Act (DSHMRA) was deemed compliant by the National Oceanic and Atmospheric Administration (NOAA).
The determination, the Canadian deep-sea mining hopeful said, is a milestone in the US federal review process governing exploration and commercial recovery activities for polymetallic nodules in areas beyond national jurisdiction.
The company, which submitted its licence application in March, is one of several that aim to explore the Pacific Ocean and extract critical minerals from polymetallic nodules found on the seafloor. These nodules are said to contain an abundance of critical minerals such as nickel, cobalt, copper and manganese, which are essential for electrification, energy infrastructure, defense applications and advanced manufacturing technologies.
Proposed joint technical evaluation
The agreement with Westwin would establish a formal framework for the companies to jointly evaluate processing and recovery pathways for nickel, cobalt, copper, and manganese contained in polymetallic nodules. Any future joint development, feedstock supply, offtake or commercial processing arrangement would remain subject to further negotiation, applicable conditions and the execution of definitive agreements.
The LOI contemplates that, under any future joint development agreement with Westwin, the company would provide representative polymetallic nodule samples and available geological and geochemical data for evaluation and Westwin would undertake bench-and pilot-scale test work to assess potential processing routes.
The proposed program would assess the principal processing steps from polymetallic nodule material through intermediate and potential saleable products, with the objective of developing a recommended processing route and process block flowsheet, Deep Sea Minerals said.
Under the LOI, the company is responsible for the costs associated with providing samples and related data, while Westwin is responsible for the costs of test work conducted at its facilities.
“Evaluating potential downstream processing pathways is an important part of our work to understand how polymetallic nodules could ultimately fit within a U.S.-based critical minerals supply chain,” Deep Sea Minerals CEO James Deckelman said in a news release.
“This non-binding arrangement with Westwin provides a framework for future discussions of a joint development agreement to evaluate the technical work required to assess potential processing routes,” Deckelman said. “The current focus is on technical evaluation, and any future commercial relationship would remain subject to applicable conditions and the negotiation and execution of definitive agreements.”
Deep Sea Minerals stock traded up 2.4% midday Wednesday in Toronto. The company has a C$40.7 million ($28.5 million) market capitalization.
