Cobalt27 Capital (TSXV: KBLT) recently acquired a US$300-million cobalt stream on Vale’s (NYSE: VALE) Voisey’s Bay nickel-copper-cobalt mine, beginning in 2021. It also has a stream on the Ramu nickel-cobalt mine in Papua New Guinea owned by the Metallurgical Corp. of China, and a net smelter return royalty (NSR) on the construction-ready Dumont nickel-cobalt project owned by RNC Minerals (TSX: RNX) in Quebec.
In total the company has 12 streams and royalties, as well as physical cobalt. In the last five months alone the company has increased its physical stock of cobalt by 800 tonnes to 3,000 tonnes. The Northern Miner recently spoke with Cobalt27’s chairman and CEO, Anthony Milewski, about the company’s investments and his outlook for nickel and cobalt in the emerging electric vehicle (EV) revolution.
The Northern Miner: You have just completed a $300-million equity raise to pay for the cobalt stream in your portfolio from Voisey’s Bay mine in Labrador.
Anthony Milewski: Vale’s Voisey’s Bay Mine is one of the best nickel-cobalt asset in the world, and so, as a company focused on cobalt and nickel, we felt it was important to participate and add value to our shareholders through streaming this orebody. Voisey’s Bay is considered “generational” as it represents the only new, significant nickel sulphide discovery in the last 30 years.
You just have to look back at the interest it generated after being discovered, with both Inco and Falconbridge vying to acquire it. Vale, which acquired Voisey’s Bay in 2006, is the largest producer of nickel globally, and are significant producers of cobalt.
The opportunity for Cobalt 27 to gain access to this asset through a 32.6% cobalt stream is really once in a lifetime, when you think about it. There may be two or three assets in this class globally.
For the rest of this interview: http://www.northernminer.com/news/cobalt27s-anthony-milewski-discusses-vale-transaction-cobalt-outlook/1003797493/?utm_source=NMWR1&utm_medium=email&utm_campaign=NMWR1-EN07262018&e=rq0wMrp3vyWrlxu0q82vM20