Cobalt Blue Holdings (ASX:COB) has signed a binding pre-final investment decision (FID) consortium deed with Iwatani Australia to advance the development of the Kwinana cobalt refinery in Western Australia, according to a Friday filing with the Australian bourse.

The agreement sets out the terms for both parties will collaborate to progress the project to FID, targeted for Dec. 31, the filing said.

Key conditions include completion of technical studies, customer-specification sample production, finalization of commercial agreements, and securing project financing, the filing added.

Iwatani must also obtain approval from Australia's Foreign Investment Review Board, the company said.

If approved, Cobalt Blue and Iwatani intend to form a joint venture, to build, commission, and operate the refinery, the company said.

Cobalt Blue's shares rose 6% at market close.