FIRST COBALT CORP COM NPV (OTCMKTS:FTSSF) announced it has entered into an option agreement with Cobalt One Limited (ASX:CO1) sighting a 50-50 joint venture on the Yukon cobalt extraction refinery in Cobalt, Ontario. This helped shares rally from lows of .31 cents and made a nice turn testing .51 cents after the recent sell off. FTSSF shares look like they are heading back to where much of the volume took place earlier in the month. The news about the joint venture has investors trading shares actively again as this is the highest volume rally so far this year. The fundamental news is matching the technical picture in the chart below.
Trent Mell, President & Chief Executive Officer commented, “The Yukon refinery and the 40 acres of permitted property can help us reduce the permitting timeline in a meaningful fashion for a future development project. We are very pleased to be partnering with Cobalt One, which was one of the first companies to identify the opportunity to revive this historic camp and is now one of the largest cobalt companies in the district.”
FIRST COBALT CORP COM NPV (OTCMKTS:FTSSF) Executive Director Jason Bontempo commented, “First Cobalt shares our vision of bulk mining in this historic camp. Their complimentary land package and strong Canadian-based management team made them logical partners for this strategic asset. I look forward to working with Trent and his team.”
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The refinery is located in Cobalt, Ontario, about 25 kilometres from the Company’s Keeley-Frontier Project. The refinery is advantageous not only in location, but in that it is environmentally permitted to treat and process ore containing arsenic. The Yukon refinery is one of only four such permitted facilities in Canada, and the only refinery in North America with no set limits on processing or storing arsenic from feeds. This is significant given that the camp has produced silver-cobalt arsenide ores throughout its history. The other refineries permitted to treat ores containing arsenic are owned by Vale, Glencore and Sherritt International.
The refinery sits on 40.2 acres and includes a tailings management facility and two water management ponds, with both the space and environmental permits in place to expand the tailings management facility by 2-3 times the current size. The refinery is situated on a rare strategic clay-rich location within the region which is highly suitable for the existing tailings management facility and any future expansions to the facility.
FTSSF also announced it has completed the non-brokered private placement financing announced on May 17, 2017. FTSSF issued a total of 2,050,001 flow-through common shares at a price of $0.60 per Flow-Through Share for gross proceeds of $1,230,000. This placement gives the company what they need to get operations up and running, and sharpens the focus building a diversified global portfolio of assets that are highly leveraged to the cobalt market. The Company’s current assets include interests in seven prospective copper-cobalt properties covering 190 square kilometres in the Democratic Republic of the Congo all with known surface mineralization, as well as an option in Canada for the former producing Keeley-Frontier mine, a high-grade mine that produced over 3.3 million pounds of cobalt and 19.1 million ounces of silver from 301,000 tonnes of ore.
FIRST COBALT CORP COM NPV (OTCMKTS:FTSSF) is part of the new mineral market chasing the evolution of the battery market for electric vehicles. Cobalt is under high demand and companies like FTSSF are establishing partnerships to get the operations up and running, so they can address the supply. FTSSF has a current $21.6 million market cap, based on the .51 cents price today. They also have a tight 49 million shares out, which will create volatility. The recent activity brings new shareholders to the table who want a piece of the cobalt market and FTSSF has positioned itself well for an opportunity. We think cobalt is quietly becoming the mineral to watch and an important metric for the electric vehicle battery market itself. We will be looking at more of these smaller tightly held small cap mineral miners. For continuing coverage on shares of First Cobalt Corp. stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!