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July 2, 2018

Vale completes $690m Voisey’s Bay cobalt streaming deals

Brazilian mining firm Vale has closed cobalt-streaming transactions with Wheaton Precious Metals and Cobalt 27 Capital, which are valued at $690m and involve the sale of future cobalt production from its Voisey’s Bay mine in Newfoundland and Labrador, Canada.

Brazilian mining firm Vale has closed cobalt-streaming transactions with Wheaton Precious Metals and Cobalt 27 Capital, which are valued at $690m and involve the sale of future cobalt production from its Voisey’s Bay mine in Newfoundland and Labrador, Canada.

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The transactions will allow Wheaton and Cobalt 27 to receive 75% of the cobalt stream from the Voisey’s Bay nickel mine, where cobalt is mined as a by-product.

The proceeds from the deals will be used to fund the Voisey’s Bay underground mine expansion project (VBME), which will extend the life of the mine to 2034.

“The Voisey’s Bay Cobalt Stream is a milestone achievement in our pursuit of building the world’s premier investment vehicle.”

Cobalt 27 chairman and CEO Anthony Milewski said: “The Voisey’s Bay Cobalt Stream is a milestone achievement in our pursuit of building the world’s premier investment vehicle to play the electric vehicle and battery energy storage revolution.

“Cobalt 27 is expecting to purchase approximately 1.6 million pounds of cobalt per year during the 2021 to 2024 ramp-up, increasing to approximately 1.9 million pounds of cobalt per year during full-scale production starting in 2025.

“We expect a stream on this world-class, low-cost, long-life asset to be rewarded in the market and build the foundation for a value re-rating of our company’s shares.”

Vale recently approved the construction of the VBME project, which is expected to cost $1.7bn for construction and commissioning works, targeting the first full year of production in 2021.

As per the transactions, Wheaton will receive 42.4% of the future cobalt production for a consideration of $390m, while Cobalt 27 will get access to 32.6% for $300m, with deliveries slated to commence from 1 January 2021.

Once Vale delivers 31 million pounds and 23.8 million pounds of cobalt to Wheaton and Cobalt 27 respectively, their entitlement will fall to 21.2% and 16.3% respectively for the life of the mine.

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Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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