June 22, 2017/ JMN / On Wednesday First Cobalt Corp. (TSX.V: FCC) announced two proposed transactions that, if completed, would consolidate over 10,000 hectares of prospective cobalt-bearing lands, 11 past producing mines and two fully permitted cobalt processing facilities in the heart of northeastern Ontario’s historic cobalt mining camp.
The first proposed deal comes as a share exchange transaction with Venture listed CobalTech Mining (TSX.V: CSK), who controls 11 past producing cobalt mines, including its flagship Duncan Kerr and Lawson mines. CobalTech has been stockpiling mineralized material and began pilot plant testing in May. The company also controls a small 100-tonne per day mill located in the town of Cobalt, Ontario.
Figure 1 - First Cobalt and CobalTech Mining Land Packages in Cobalt Camp, Ontario
"First Cobalt has a strong vision for the future of this region and this transaction will be beneficial to both to CobalTech shareholders and the community,” stated CobalTech CEO Bruce Bragagnolo. “We look forward to finalizing this transaction with First Cobalt in due course.”
In its second announcement yesterday, First Cobalt reported it had delivered a friendly merger proposal to Australian-listed Cobalt One Ltd. (ASX: CO1). The proposal outlines a 60/40 merger in favour of Cobalt One, with the surviving entity listed on the TSX Venture Exchange.
Cobalt One controls numerous properties adjacent to First Cobalt, including the past producing Silverfields mine previously operated by Teck. A merger between the two would also consolidate 100% ownership in the fully permitted Yukon cobalt extraction refinery, in which the two sides inked a joint venture deal on in early June.
Figure 2: Fully Permitted Cobalt Extraction Refinery
First Cobalt’s strategy to consolidate the assets of three companies operating within Ontario’s cobalt mining camp, if successful, will build a dominate player in Canada’s richest past producing cobalt district.
“A consolidation of properties, the refinery and the permitted property upon which the refinery is situated offer the potential to significantly shorten the pathway to production,” stated First Cobalt’s President and CEO Trent Mell. “This transaction will benefit shareholders in both companies, while creating one of the largest cobalt exploration companies in the world."
