Cobalt One (ASX:CO1) has received commitments to raise up to $2 million at $0.10 per share via an oversubscribed share placement to existing and new institutional and sophisticated investors.
Last month, Equator Resources changed its name to Cobalt One, reflecting the company’s pure play cobalt exposure in the Cobalt Mining Camp of Ontario, Canada.
The funds raised via the placement will be used to complete the asset purchase agreement with 36569 Yukon Inc for the refinery assets located in the Cobalt Mining Camp.
The Yukon refinery is designed for primary cobalt and nickel extraction using environmentally friendly technologies to produce high purity cobalt chemical compounds.
The refinery is not currently operating, and will require upgrades to meet Cobalt One’s potential future processing demands.
Importantly, The Yukon refinery is the only refinery in North America with no set limits on processing or storing arsenic from feeds.
Cobalt One’s purchase of the refinery is a long-term strategic addition to the company’s existing cobalt project portfolio in the Cobalt Mining Camp.
The company already holds a large portfolio of land in the region across four different projects - Cobalt Town, Lorrain Valley, Silver Centre and Cooper Lake.
The recent surge in cobalt demand is driven by the rapidly growing lithium-ion battery market.
Interestingly, there is more cobalt by dollar value contained in modern lithium-ion battery chemistries than lithium.
Despite the historic presence of global large-cap miners, the projects at Cobalt Mining Camp remains underexplored using modern day exploration techniques.