On August 21, 2017, CobalTech and First Cobalt Corp. announced that, following the signing of a binding letter of intent June 23, 2017, they have entered into a definitive merger agreement pursuant to which First Cobalt Corp. has agreed to acquire all of the issued and outstanding common shares of CobalTech by way of a court approved plan of arrangement. Under the terms of the planned arrangement, CobalTech shareholders will receive 0.2632 of a First Cobalt common share representing the equivalent of $0.20 per CobalTech share. The combined company should have greater liquidity, a larger capital markets profile and increased access to capital. First Cobalt has assets in the Cobalt, Ontario mining camp and in the Congo. Completion of the arrangement is subject to a number of conditions, including approval by the shareholders of CobalTech and receipt of all required regulatory approvals including the approval of the TSXV. The arrangement can not close until these conditions are satisfied and the required approvals are obtained.
Merger with First Cobalt
Strategically located in the heart of Cobalt, Ontario
CobalTech Mining Inc. is a cobalt exploration company with assets in Ontario, Canada. The Company owns a strategically located land package in the heart of Cobalt, Ontario, in an area known for its geological setting responsible for unique mineralization composed of quartz-carbonate veins enriched in silver-cobalt-nickel-bismuth-arsenic. To date over 460 million ounces of silver have been produced from the Cobalt mining camp.
The town of Cobalt was named after the mineral due to its abundance in the area. CobalTech’s initial focus will be on the extensive rock piles that have been left on surface from former silver mining operations. The silver mines were only after the high grade silver and left the cobalt behind in old dumps and tailings. Select sampling of the old dumps has returned grades as high as 761 g/t silver and, 0.95% Co and 0.33% Ni.
The Company’s properties were selected to include 11 former producers or advanced exploration projects with both surface and underground workings. The projects include The projects include the Kerr, Lawson, Drummond, Conisil, Hargraves, Belmont, Silver Cross, Campbell-Crawford, Juno, Airgiod and Silver Bird mines that had an estimated total output of 37.266 million ounces of silver and 253,000* pounds of cobalt all mined from shallow depths not exceeding 186m from surface**. The equipment and building for a fully permitted 100 tpd mill are on site.
* Incomplete and partial records
** Sergiades, A.O., Silver Cobalt Calcite Vein Deposits of Ontario; Ontario Department of Mines, Minera Resources Circular No. 10, 1968, 498p.
Providing Canadian-mined cobalt to power the high tech battery industry.
Cobalt is an essential component for cathodes in NCA and NMC-type batteries. These high-energy battery cells are used in smartphones, tablets, portable computers, power tools, and electric vehicles. At present, a supply versus demand crunch is imminent, and a significant increase in global production is necessary over the next few years to sustain the supply chain challenges of the battery industry. 65% of mined cobalt is from the politically unstable Democratic Republic of Congo, and China refines 43% of the world’s cobalt. Companies such as Tesla are looking to source new raw material strictly from North American sources, driving demand for local mining and processing.