Australian-based Cobalt One has entered a trading halt pending an announcement on the merger proposal. The two companies signed an option agreement earlier this month whereby First Cobalt was granted an option to acquire 50% of Cobalt One’s cobalt assets in the Cobalt region of Ontario.
Cobalt One’s assets include a cobalt refinery while First Cobalt’s assets include the former producing Keeley-Frontier silver-cobalt mine in Ontario and cobalt exploration ground in the Democratic Republic of Congo.
Under the “friendly merger” proposed by First Cobalt, Cobalt One would hold 60% of the enlarged company, with its chairman Paul Matysek, CEO Jason Bontempo and director Bob Cross to go onto the First Cobalt board.
First Cobalt would retain its Toronto listing and seek a secondary listing of CHESS Depositary Interests in Australia.
First Cobalt CEO Trent Mell said a merger would consolidate the two largest land packages in the Cobalt camp into a single landholder with more than 10,000ha.
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