- First Cobalt (FCC) is looking to advance its First Cobalt Refinery with an additional C$8.5 million on its balance sheet
- The company will issue 27.42 million units to Eight Capital and a syndicate of underwriters at a price of $0.31 each
- These units will consist of one common share and one-half of a share purchase warrant, with each whole warrant exercisable at a price of $0.50 per share
- Earlier this year, First Cobalt signed two long-term cobalt hydroxide feed arrangements with Glencore AG and IXM SA, which will provide 4,500 tonnes of cobalt a year to the First Cobalt Refinery
- First Cobalt is currently down 6.06 per cent to $0.31 per share
First Cobalt (FCC) is looking to advance its First Cobalt Refinery with an additional C$8.5 million on its balance sheet.
Earlier today, the company said it would raise up to $5 million by issuing 16.13 million units to Eight Capital and a syndicate of underwriters at a price of $0.31 each, but will now issue a total of 27.42 million units.
These units will be comprised of one common share in First Cobalt and one-half of a common share purchase warrant. Each whole warrant will be exercisable at a price of $0.50 per share for a period of 24 months from the date of issuance.
Eight Capital has also been granted an over-allotment option to purchase an additional 15 per cent of the units on offer, exercisable at any time – either in part or in full – within 30 days of the offer closing.
Earlier this year, First Cobalt signed two long-term cobalt hydroxide feed arrangements with Glencore AG and IXM SA – a wholly owned subsidiary of CMOC – which will provide a total of 4,500 tonnes of cobalt a year to the First Cobalt Refinery, beginning in 2022.
Once operational, the First Cobalt Refinery is expected to be North America’s only producer of cobalt sulfate for the electric vehicle market.
“Our globally competitive cost structure and industry-leading ESG credentials put us in a strong position for a rapidly growing EV market,” said Trent Mell, President and CEO of First Cobalt.
“With feedstock arrangements in place, we can continue to advance our vision to create a new cobalt supply chain in North America,” he added.
The company is now focused on securing off take agreements, with a view to beginning construction in mid-2021 and full commissioning of the refinery in the second half of 2022.
First Cobalt is currently down 6.06 per cent to $0.31 per share at 12:37pm EST.
