The LOI establishes a framework for the parties to negotiate a definitive joint development agreement in the future, following, among other things, 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. Such a joint development agreement would establish a formal framework for the Company and Westwin 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. There can be no assurance that the Company ever obtains subsea mineral rights or enters into any joint development or other definitive agreement with Westwin.
The LOI, or any future joint development or other definitive agreement with Westwin, is not intended to replace, modify, or otherwise affect Westwin’s existing feedstock relationships or arrangements with third parties.
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 joint development 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.
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, unless otherwise agreed by the parties.
The parties contemplate that the proposed technical evaluation would assess whether polymetallic nodules could represent an additional potential feedstock source for future US-based critical mineral processing capacity.
“Evaluating potential downstream processing pathways is an important part of our work to understand how polymetallic nodules could ultimately fit within a US-based critical minerals supply chain,” said James Deckelman, Chief Executive Officer of Deep Sea Minerals Corp. “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. 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.”
“Westwin’s potential collaboration with Deep Sea Minerals is an important development towards strengthening the nation’s critical mineral supply chain,” said KaLeigh Long, founder and CEO of Westwin. “By evaluating new potential sources of critical mineral feedstock alongside domestic processing capabilities, we are working to expand the options available to support US national security and resilience. We look forward to bringing Westwin’s processing expertise to this potential collaboration and exploring the potential of polymetallic nodules as an additional domestic resource.”
If the parties enter into a definitive joint development agreement in the future, and the contemplated technical program identifies a processing route that the parties determine to be technically and commercially viable, the Company and Westwin may consider a longer-term commercial relationship involving the Company supplying Westwin with polymetallic nodule feedstock. Any future supply arrangement would remain subject to, among other things, successful technical evaluation, applicable funding conditions, the Company obtaining the required exploration and/or commercial recovery rights and regulatory approvals, sufficient processing capacity, commercial viability, and the negotiation and execution of definitive agreements. The Company has not committed to provide Westwin with any minimum quantity of polymetallic nodule material, and neither party currently has any binding supply, offtake, or commercial processing obligation. There can be no assurance that any ongoing commercial relationship with Westwin will ever materialize or that the Company will ever be able to provide a commercial supply of polymetallic nodule feedstock.
