- Cobalt Blockchain (COBC) has ended negotiations with Traxys Europe S.A. regarding the Traxys-owned cobalt hydroxide plant
- An LOI entered into by the parties in 2018 outlined plant operations by COBC and a trade finance facility to be provided by Traxys and an offtake agreement
- Peter Copetti iterated the company’s plan to conduct a review of its business strategy in light of this development
- Cobalt Blockchain Inc. (COBC) is a Canadian resource company focused on cobalt assets in the Democratic Republic of the Congo
- Cobalt Blockchain Inc. (COBC) is up 4.76 per cent, trading at C$0.11 per share at 10 am ET
Cobalt Blockchain (COBC) has ended negotiations with Traxys Europe S.A. with respect to the Traxys-owned cobalt hydroxide plant located in the DRC.
A letter of intent entered into by the parties in August of 2018 contemplated further negotiations for the operation of the plant by COBC, a trade finance facility to be provided by Traxys to COBC, and an offtake agreement in favour of Traxys for cobalt concentrate produced from the plant.
Negotiations between the parties have been ongoing since the signing of the letter of intent. The cobalt hydroxide plant was to have comprised a core piece of the company’s conflict-free, ethically sourced mining, processing, and metals trading platform.
Peter Copetti, Chairman and CEO of COBC, commented,
“We are extremely disappointed that the significant time and effort expended by management on negotiations with Traxys did not result in a concluded transaction for this asset. In light of this development, the board, with the assistance of the recently established Special Advisory Committee, intends to conduct a review of the company’s business plan and strategy and make appropriate adjustments to advance the company’s business.”
Cobalt Blockchain Inc. (COBC) is a Canadian resource company focused on the exploration and development of mineral assets in the Democratic Republic of the Congo (DRC) and North America.
COBC has developed and is implementing a blockchain-based reporting platform to provide greater certainty of provenance and further assurance that all minerals procured are ethically sourced.
Cobalt Blockchain Inc. (COBC) is up 4.76 per cent, trading at C$0.11 per share at 10 am ET.