First Cobalt buys US Cobalt in friendly expansion deal

From Reuters - March 14, 2018

TORONTO (Reuters) - Canadas First Cobalt Corp on Wednesday announced a friendly takeover of US Cobalt Inc aimed at expanding its North American assets and accelerating its push to supply batteries for electric vehicles.

Ontario-focused First Cobalt said the equity deal is valued at approximately C$149.9 million ($115.74 million), representing a 61.8 percent premium to US Cobalts closing stock price on Tuesday.

Under the agreement, First Cobalt will add US Cobalts exploration properties in Idaho and Utah to the 50 historic mining properties it controls in Cobalt, Ontario, alongside a mill and permitted cobalt refinery.

Neither company is mining cobalt yet, but both are exploring deposits of the key mineral.

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, First Cobalt Chief Executive Trent Mell said in a statement.


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