Australian miner Chalice Mining has signed an agreement with Japan’s Mitsubishi to develop its Gonneville multi-mineral project in Western Australia, the company said Wednesday.

Under a non-binding MOU, the firms will work together during the project’s ongoing pre-feasibility study (PFS), focusing on technical, financing, marketing and offtake aspects. Funded by Chalice, the study is expected to be completed by mid-2025.

Located on Chalice-owned farmland around 70 kilometres north-east of Perth, the project is targeting nickel, copper, cobalt and platinum group elements (PGE).

Chalice ceo, Alex Dorsch, says the MOU is the result of extensive discussions and due diligence across the past year. The partnership highlights the “longer-term strategic nature and value of the project as a potential large-scale, long-life and low-carbon source of critical minerals for Western markets,” Dorsch adds.

“In the context of key ongoing PFS workstreams and optimisations, the MOU structure is favourable, as it provides a framework for collaboration for both parties during the PFS and allows for the progression and de-risking of the project prior to having good faith discussions around a potential joint arrangement and investment following the completion of the PFS,” he continues.

Kallanish understands that the duo will explore a potential binding, strategic partnership to develop Gonneville. Yet, as the MOU is non-exclusive, Chalice may also collaborate with other potential partners.

The project has a total mineral resource estimate of 660 million tonnes, including 950,000 t of nickel, 540,000 t of copper and 96,000 t of cobalt.

Chalice is aiming to take a final investment decision on the project in late 2026. 

Early this year, the miner said it is reducing its expenditures by about 40% compared to 2023 due to weak market conditions. Chalice’s shares plunged around 20% on Wednesday and were trading at AUD 1.22 ($0.81) per share at the time of writing.