Energy Services Inc. announced that it and Battery Mineral Resources Corp. ("BMR") have terminated their Process Facility and Cobalt Supply Agreement. ESI also announces that it intends to pursue a going private transaction to buy out ESI's minority shareholders.

ESI and BMR terminated the Process Facility and Cobalt Supply Agreement entered into in May 2018 by ESI and a predecessor in interest and a current subsidiary of BMR. The agreement related to BMR's cobalt-focused mineral exploration claims located in Ontario. If the project proceeded, ESI was to finance, build and operate a cobalt processing facility supplied by feedstock material mined by BMR from its properties in Ontario. ESI made a CAD 10 million payment to BMR in July 2018 for the right to participate in the project.

The agreement was carried by ESI as an intangible asset until the end of the first quarter of 2020, when a non-cash impairment charge was recorded to reduce the carrying value to zero. The factors which led to that decision are outlined in Note 8 to ESI's unaudited interim financial statements as at and for the three months ended March 31, 2020.