- Cobalt demand is soaring
- First Cobalt aims to be world’s largest pure play in cobalt
- Completing three-way merger, First Cobalt takes another giant step toward goal
Cobalt demand continues to soar. Already essential for super-alloys, space vehicles, rocket engines and power plants, cobalt’s unique properties are crucial in high density Li-ion batteries and greatly extend the range of electric vehicles (EV) between charges. Current industrial and governmental uses of cobalt are so vital that the U.S. Defense Logistics Agency designated lithium cobalt oxide and lithium nickel cobalt aluminum oxide compounds as strategic for national interests and has been stockpiling cobalt since 2014.
Last year, high-energy lithium-ion cells and the EV battery industry consumed about 6.5 percent of refined cobalt, and there’s currently a deficit of around 900 tons of cobalt this year. EV cobalt usage is pegged to increase to about 17 percent of total production within four years and drive deficits to nearly 130,000 tons (http://dtn.fm/7m8XY). Concernedly, about 60 percent of the world’s cobalt now comes from the politically unstable Democratic Republic of Congo, where forced child labor and corruption are rampant.
Positioned to exploit the burgeoning demand imbalance, First Cobalt Corp. (TSX.V: FCC) (OTCQB: FTSSF) has just taken another giant step toward rapidly assembling the largest (and politically stable) portfolio of cobalt assets in the world. First Cobalt just announced the completion of its merger with Cobalt One, combining complementary portfolios of high quality cobalt exploration assets (http://dtn.fm/9tMBd). Upon completion of the mergers with Cobalt One Ltd. and CobalTech Mining Inc., First Cobalt will control over 10,000 hectares of prospective land and 50 historic mining operations in the Cobalt Camp of Ontario, Canada, as well as a mill and a permitted refinery facility.
The combined company will also own the only permitted cobalt refinery in North America designed to produce battery materials. In a news release, Trent Mell, president and chief executive officer of First Cobalt, stated, “We are one step closer to creating the largest pure play cobalt company in the world. We look forward to seeing First Cobalt shares trade on the ASX, as this dual listing will bring a much larger shareholder base and added liquidity.”
Australia-based Cobalt One shareholders overwhelmingly approved the First Cobalt transaction, with over 99% of votes cast in favor of the merger. The assets of Cobalt One logistically and synergistically fit with the scope of First Cobalt’s mission of becoming the largest pure play cobalt company in the world. With current cobalt deficits, a paucity of stable resources and global demand soaring, First Cobalt’s recent merger should garner the company recognition as a global leader in cobalt resources.
For more information, visit the company’s website at www.FirstCobalt.com
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