Legacy Minerals Partners with Cobalt Blue for Critical Minerals Development

Strategic Partnership: Legacy Minerals and Cobalt Blue Join Forces to Advance Critical Minerals

Legacy Minerals Holdings Ltd (ASX:LGM) has established a strategic partnership with Cobalt Blue Holdings Ltd (ASX:COB) through a three-year Memorandum of Understanding (MoU) focused on evaluating commercialization pathways for the NiCo Young Project in New South Wales. This collaboration represents a significant development in Australia's critical minerals transition, potentially accelerating the development of one of the country's largest nickel-cobalt deposits.

The partnership brings together Legacy's substantial resource base with Cobalt Blue's technical expertise in processing similar ore types, creating a synergistic approach to advancing this strategic asset. With both companies focused on critical minerals essential for the energy transition, this MoU signals a commitment to enhancing domestic supply chains for battery metals.

Why is the NiCo Young Project Strategically Important?

The NiCo Young Project, owned 100% by Legacy Minerals, hosts a substantial mineral resource estimated at 167.8 million tonnes grading 0.59% nickel and 0.06% cobalt (at a 0.6% nickel equivalent cut-off). This represents approximately 1 million tonnes of contained nickel and 100,000 tonnes of contained cobalt—critical metals essential for battery manufacturing and the renewable energy transition.

The scale of this resource positions NiCo Young as one of the most significant nickel-cobalt deposits in Australia, with potential to supply materials for hundreds of thousands of electric vehicles and energy storage systems. As global cobalt production continues to grow, developing such resources becomes increasingly strategic for Australia's economic future.

Beyond its impressive nickel and cobalt resources, Legacy Minerals has initiated a comprehensive review of the project's scandium potential. Historical work identified a JORC 2004 scandium resource that wasn't included in the latest resource estimate. The company plans to conduct detailed literature reviews, dedicated scandium assaying, and metallurgical tests to potentially define discrete, near-surface scandium resources.

Scandium, while present in smaller quantities, commands significantly higher prices than nickel or cobalt and is used in high-performance aluminum alloys and solid oxide fuel cells, adding another dimension to the project's potential value.

How Does This Partnership Support Australia's Critical Minerals Strategy?

The collaboration between Legacy Minerals and Cobalt Blue aligns perfectly with Australia's Critical Minerals Strategy and the Commonwealth Government's "A Future Made in Australia" initiative. By combining Legacy's resource base with Cobalt Blue's processing expertise, the partnership aims to strengthen domestic supply chains for battery metals—reducing Australia's dependence on overseas processing and manufacturing.

This approach supports the national objective of moving up the value chain in critical minerals, capturing more economic benefit within Australia rather than simply exporting raw materials. The government has identified battery metals as strategic priorities, with nickel and cobalt specifically highlighted as critical to future energy technologies.

Cobalt Blue's development of the Kwinana Cobalt Refinery in East Rockingham, Western Australia (a proposed joint venture with Iwatani Australia) provides a potential processing pathway for materials from the NiCo Young deposit. This vertical integration approach supports Australia's ambition to move up the value chain in mineral beneficiation opportunities.

The partnership also demonstrates the type of industry collaboration encouraged by policymakers to advance Australia's position in global battery supply chains, creating opportunities for value-adding activities that generate jobs and economic growth in regional areas.

What Makes NiCo Young Stand Out Among Australian Nickel-Cobalt Deposits?

NiCo Young ranks among the four largest nickel-cobalt deposits identified in New South Wales, alongside:

1. Sunrise (Sunrise Energy Metals Ltd, ASX:SRL)
2. Platina/Burra (Rio Tinto, ASX:RIO)
3. Melrose (Rimfire, ASX:RIM)

What sets NiCo Young apart is not just its size but also the circumstances of its acquisition. Legacy Minerals secured the project in May 2025 after the previous owners (Jervois) relinquished the exploration tenure. This allowed Legacy to apply for a new exploration licence over previously untenured ground with no associated liabilities, encumbrances, or private royalties—a clean slate for development.

This acquisition strategy represents a significant competitive advantage, as many other major deposits come with complex ownership histories, royalty obligations, or legacy agreements that can complicate development pathways.

The project also benefits from its location in an established mining region with access to infrastructure, skilled workforce, and supportive communities—factors that can significantly impact development timelines and costs compared to more remote or challenging jurisdictions.

Table: Comparison of Major Nickel-Cobalt Deposits in NSW

What Are the Next Steps for the NiCo Young Project?

Legacy Minerals has outlined several key initiatives to advance the NiCo Young Project:

1. Scandium Evaluation: Conducting detailed literature reviews, dedicated scandium assaying, and metallurgical leach tests to determine the viability of reporting discrete scandium resources.

2. Strategic Collaboration: Working with Cobalt Blue to evaluate commercialization opportunities for the project's nickel and cobalt resources, leveraging Cobalt Blue's expertise in similar ore types.

3. Resource Expansion: Potential drilling and exploration activities aimed at growing the current resource base and improving geological confidence.

4. Processing Pathway Development: Leveraging Cobalt Blue's expertise to determine optimal processing routes for the project's minerals, potentially including pilot-scale testing.

5. Market Assessment: Evaluating potential offtake arrangements and strategic partnerships for future production, particularly within Australia's emerging battery manufacturing sector.

These initiatives represent a systematic approach to de-risking and advancing the project, focusing first on understanding the full resource potential before moving toward more detailed economic studies and development planning.

How Does This Partnership Position Legacy Minerals in the Battery Metals Sector?

The MoU with Cobalt Blue significantly enhances Legacy Minerals' position in the battery metals investment space. By partnering with an established player in cobalt processing, Legacy gains access to technical expertise and potential processing pathways that could accelerate the project's development timeline.

For Legacy Minerals' CEO and Managing Director Christopher Byrne, the partnership represents "a significant step for the NiCo Young Project towards assessing potential pathways towards commercialization." Cobalt Blue's expertise in similar ore types and strategic positioning in the refining sector makes them an ideal partner for advancing the project.

This strategic alignment positions Legacy to potentially bypass years of technical development work by leveraging Cobalt Blue's existing knowledge and infrastructure plans. For investors, this partnership reduces technical risk and provides a clearer path to potential commercialization—key factors in valuing early-stage resource projects.

As major automotive and battery manufacturers increasingly seek to secure ethical, reliable supplies of battery metals outside traditional sources like the Democratic Republic of Congo, projects like NiCo Young in stable jurisdictions like Australia become increasingly attractive as potential supply partners.

What is the Broader Context of Critical Minerals Development in Australia?

Australia's critical minerals reserve sector has gained significant momentum in recent years, driven by:

1. Government Support: The Australian government has identified critical minerals as a strategic priority, offering various incentives and support mechanisms for project development, including funding for processing facilities and research initiatives.

2. Global Demand: Surging demand for battery metals, driven by electric vehicle adoption and renewable energy storage, has created favorable market conditions for new projects. Industry analysts project continued strong growth in nickel and cobalt consumption over the coming decades.

3. Supply Chain Security: Growing concerns about supply chain resilience have highlighted the importance of developing domestic sources of critical minerals. Geopolitical tensions and pandemic-related disruptions have accelerated efforts to develop more diversified supply chains.

4. Processing Capabilities: Increasing focus on developing downstream processing capabilities within Australia to capture more value from mineral resources. Projects like Cobalt Blue's Kwinana Cobalt Refinery represent this shift toward domestic value addition.

The Legacy Minerals-Cobalt Blue partnership exemplifies this broader trend, combining resource ownership with processing expertise to create an integrated development pathway that aligns with national economic objectives.

What Are the Potential Economic Benefits of the NiCo Young Project?

While specific economic assessments are still pending, the NiCo Young Project could deliver substantial benefits:

1. Job Creation: Development and operation of the mine would create direct employment opportunities in regional New South Wales, with additional indirect jobs through supply chains and service providers.

2. Supply Chain Development: Establishing a domestic supply of nickel, cobalt, and potentially scandium would support Australia's emerging battery and clean energy industries, creating opportunities for manufacturing and technology development.

3. Export Potential: Processed materials could be exported to global markets, generating revenue and improving Australia's trade balance while reducing dependence on raw material exports.

4. Technology Transfer: Collaboration with Cobalt Blue could facilitate knowledge transfer and technological innovation in mineral processing, building domestic capability in high-value technical fields.

5. Regional Development: Mining projects bring infrastructure, services, and economic activity to regional areas, supporting broader community development objectives.

The project's multi-metal nature—with potential for nickel, cobalt, and scandium production—provides economic resilience through diversified revenue streams, reducing vulnerability to price volatility in any single commodity.

How Does the Global Transition to Clean Energy Impact Projects Like NiCo Young?

The global energy transition is driving unprecedented demand for battery metals:

1. Electric Vehicle Growth: Global EV sales continue to accelerate, requiring substantial quantities of nickel and cobalt for battery production. Industry forecasts suggest EV penetration could reach 30-40% of new vehicle sales by 2030, creating sustained demand growth for battery materials.

2. Energy Storage Expansion: Grid-scale and residential energy storage systems require similar battery technologies, further increasing demand. As renewable energy deployment accelerates, storage capacity must grow proportionally to manage intermittency.

3. Supply Constraints: Limited new discoveries and development challenges for cobalt (particularly related to ethical sourcing concerns in the Democratic Republic of Congo) create opportunities for new, ethically-sourced supplies from stable jurisdictions like Australia.

4. Critical Mineral Policies: Major economies including the US, EU, and Japan have implemented policies to secure critical mineral supply chains, creating favorable market conditions for new projects in politically stable regions.

The NiCo Young Project is well-positioned to benefit from these trends, particularly given its location in a stable jurisdiction with established mining regulations and infrastructure. As battery chemistries evolve, the diversity of metals at NiCo Young (nickel, cobalt, and potentially scandium) provides options to adapt to changing market requirements.

What Role Could Scandium Play in the Project's Development?

While nickel and cobalt are the primary focus of the NiCo Young Project, the potential scandium resource adds another dimension to its value proposition:

1. High-Value Metal: Scandium commands significantly higher prices than nickel or cobalt, potentially enhancing project economics even at relatively low concentrations. Current market prices for scandium oxide can range from $1,500 to $5,000 per kilogram, compared to nickel at approximately $20 per kilogram.

2. Advanced Applications: Scandium is used in high-performance aluminum alloys for aerospace, defense, and sporting goods applications, as well as in solid oxide fuel cells. These specialized applications support premium pricing but require high-purity production.

3. Supply Constraints: Global scandium production is limited, with most supply coming from by-product recovery from other mining operations or from Russia and China. This creates opportunities for new, reliable sources in Western jurisdictions.

4. Australian Advantage: The Lachlan Fold Belt hosts significant nickel-cobalt-scandium deposits, including Sunrise and Syerston, which together contain a global scandium resource of 19,007 tonnes. This regional concentration of resources creates potential for specialized processing expertise and infrastructure.

Legacy Minerals' decision to evaluate the scandium potential at NiCo Young demonstrates a comprehensive approach to maximizing the project's value. Even modest scandium production could significantly impact project economics due to its high unit value, potentially supporting earlier or more robust development scenarios.

The Pathway Forward: Key Milestones for NiCo Young

For investors and industry observers monitoring the NiCo Young Project, several key milestones will mark progress toward potential development:

1. Scandium Resource Definition: Results from the ongoing scandium evaluation work could potentially add significant value through resource diversification.

2. Processing Studies: Outcomes from the collaboration with Cobalt Blue will provide insights into optimal processing pathways and potential integration with the Kwinana facility.

3. Resource Expansion: Any drilling or exploration success that increases the resource size or improves confidence categories would enhance project economics.

4. Preliminary Economic Assessment: Initial economic studies will provide the first comprehensive look at potential development scenarios and project economics.

5. Strategic Partnerships: Additional partnerships with battery manufacturers, technology providers, or end-users could accelerate development and provide clearer commercialization pathways.

The three-year timeframe of the MoU suggests a methodical approach to project evaluation, with both companies recognizing that thorough technical work now will support stronger development outcomes in the future.

Conclusion: A Strategic Move in Australia's Critical Minerals Landscape

The partnership between Legacy Minerals and Cobalt Blue represents a strategic alignment of complementary capabilities in the Australian critical minerals sector. By combining Legacy's resource base with Cobalt Blue's processing expertise, the collaboration aims to accelerate the development of the NiCo Young Project and contribute to Australia's position in the global battery metals supply chain.

As the world transitions to cleaner energy systems and transportation, the demand for nickel, cobalt, and scandium is expected to grow substantially. The NiCo Young Project, with its significant resource base and strategic partnership approach, is well-positioned to play a role in meeting this demand while creating value for shareholders and the broader Australian economy.

This MoU between Legacy Minerals and Cobalt Blue exemplifies the type of industry collaboration necessary to advance Australia's critical minerals strategy, demonstrating how complementary capabilities can be leveraged to overcome technical and commercial challenges in developing complex resources for the global energy transition.

Disclaimer

This article contains forward-looking statements regarding the development of mineral resources. Readers should note that mineral development projects are subject to numerous risks and uncertainties that may cause actual outcomes to differ from projections. Technical and economic assessments referenced are preliminary in nature. Investors should seek professional advice before making investment decisions related to mining and exploration companies.

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