Canada-based mining company First Cobalt has signed a $140m binding agreement to acquire Cobalt One and form a new cobalt exploration company named MergeCo with a proforma market capitalisation of $110m.

Under the acquisition, First Cobalt has agreed to offer 0.145 common shares for each share held by MergeCo shareholders.

The portfolio of the newly formed company will comprise exploration assets and a cobalt extraction refinery in the Ontario mining site.

China-based Wanguo International Mining Group has entered an agreement with Australia-based mineral investment and exploration company AXF Resources to acquire 611 shares of AXF Gold Ridge for A$58.35m ($45.67m) in cash, representing a 61.1% stake. 

"Wanguo has agreed to provide $39.13m for the reconstruction, and administration and maintenance costs associated with the project."

Wanguo has also agreed to provide A$50m ($39.13m) for the reconstruction, and administration and maintenance costs associated with the project, taking the total commitment to A$108.35m ($84.8m).

Upon completion of the acquisition, Wanguo International will own approximately 55% interest in ASG, which AXF Gold Ridge owns a 90% equity interest in.

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By GlobalData

Wanguo is proposing to fund the commitment through internal resources, bank borrowings, and either by issuing convertible bonds or placement of listed shares. 

Wanguo is engaged in the production and sale of concentrates products, while AXF Gold produces and sells gold and related items.