First Cobalt closes merger with CobalTech Mining

5 December 2017 (Last Updated December 5th, 2017 11:32)

Canadian exploration company First Cobalt has merged with CobalTech Mining through a court-approved plan of arrangement. 

Canadian exploration company First Cobalt has merged with CobalTech Mining through a court-approved plan of arrangement.

In November, the merger agreement received approval from the Supreme Court of British Columbia.

The companies reached a definitive merger agreement in August this year after signing a binding letter of intent in June.

Under the agreement, First Cobalt will issue 0.2632 of a common share in exchange for each CobalTech share.

As a result of the transaction, CobalTech will become a wholly owned subsidiary of First Cobalt.

The final approval of the TSX Venture Exchange remains the outstanding regulatory step for the merger.

“We intend to pursue an aggressive exploration programme in 2018 while continuing to assess other growth opportunities.”

In September, First Cobalt opted to not complete the strategic alliance in connection with seven cobalt exploration properties in the DRC in order to focus on the Canadian Cobalt Camp.

First Cobalt president and CEO Trent Mell said: “Over a very short period, we have created the largest cobalt exploration company in the world, controlling almost half of what we believe may be the most prospective cobalt district outside of the Democratic Republic of the Congo (DRC).

“We intend to pursue an aggressive exploration programme in 2018 while continuing to assess other growth opportunities.”

The company also completed its merger with Cobalt One.

Through the acquisition of both companies, First Cobalt now has control over more than 10,000ha of prospective land and 50 mining operations in the Cobalt Camp.

The company has land-holding in the Cobalt Camp in Ontario and owns a cobalt refinery in North America permitted to produce battery materials.