Toronto-based First Cobalt wants “to create one of the largest cobalt exploration companies in the world,” in Ontario, Canada.
First Cobalt is proposing a merger with Australia’s Cobalt One (formerly Equator Resources) to merge the two largest land packages in the Cobalt camp into one institution of more than 10,000 hectares.
Under the proposal Cobalt One shareholders would own 60% of this entity with First Cobalt shareholders owning the other 40%.
The two companies had signed an option agreement to become joint venture partners on the Yukon refinery in North Cobalt. Under the new deal First Cobalt will become the sole owner.
In a June 21 news release, First Cobalt president-CEO Trent Mell said a merger would speed up production and “facilitate new discoveries in this camp.”
The new board of directors would consist of Cobalt One chairman Paul Matysesk, Cobalt One CEO Jason Bontempo and some of the presiding First Cobalt board members.
The agreement is non-binding and is subject to conditions, including regulatory and shareholder approval.
First Cobalt would maintain its TSX Venture listing and seeking to obtain a secondary ASX listing, the new entity would be based in Toronto.
Additionally, First Cobalt announced it has signed a non-binding letter of intent (LOI) to gain all the issued and outstanding shares of CobalTech.
CobalTech has 11 former mines near the town of Cobalt, including the Duncan Kerr project, eight locations in Quebec and its Werner Lake East Cobalt property near Kenora in northwestern Ontario.
CobalTech inherited approximately 6,600 tonnes of silver and cobalt-rich material left on the surface when it acquired the Kerr and Lawson silver mines last fall.
CobalTech CEO Bruce Bragagnolo said “First Cobalt has a strong vision for the future of this region and this transaction will be beneficial to both to CobalTech shareholders and the community.”