First Cobalt is set to cancel the strategic alliance in seven cobalt exploration properties in the Democratic Republic of the Congo in favour of properties in Canada.
Through the merger, the company is set to have access to a combined land position of more than 10,000ha in the Cobalt Camp.
According to the company, the opportunity to immediately begin work on several advanced exploration targets in the Cobalt Camp offsets the potential in the DRC properties at present.
First Cobalt president and CEO Trent Mell said: “Investors are very supportive of our vision for the Canadian Cobalt Camp and we are aligned with their desire to focus on the bulk mining potential of this district, located in the best mining jurisdiction in the world.
“The Canadian Cobalt Camp is emerging as one of the most prospective targets for cobalt exploration.
“The DRC remains very appealing geologically but the investment climate has deteriorated since the strategic alliance was announced and we have significantly expanded our footprint in Canada.”
The company does not rule out the possibility of exploring cobalt opportunities in other parts of the world in future.