A leading explorer, developer and miner of cobalt in the North America region, has acquired another cobalt producer as it looks to cement its status as a market leader.
First Cobalt Group, with its flagship Greater Cobalt Project, has entered into an agreement to acquire US Cobalt in a deal with a total equity value of C$149.9 million.
The company controls 50 historic mines spread over 10,000 hectares of Ontario, Canada as well as owning the only permitted cobalt refinery in North America capable of producing battery materials.
Through the acquisition, First Cobalt will be strategically positioned close to technology and electric vehicle hubs in Michigan and California.
As a combined entity, First Cobalt have an enhanced capital markets profile with a global institutional shareholder base, a strong balance sheet and a proven management team
Trent Mell, First Cobalt President and CEO commented,
“We foresee a shortage of cobalt over the next five years yet there are few companies doing significant work to identify new sources of supply. This transaction creates a larger platform to discover and develop cobalt projects for the growing electric vehicle market by combining high quality North American assets in two of the best cobalt jurisdictions outside the DRC,”
“US Cobalt’s Idaho project complements our Canadian Cobalt Camp properties, offering upside potential for shareholders of both companies. We view the First Cobalt Refinery as a strategic asset as it is the only permitted cobalt refinery in North America capable of producing battery materials. We look forward to working with the US Cobalt technical team as they complete drilling in support of a maiden mineral resource estimate expected later in 2018.”