Investors piled into Cobalt 27 Capital Corp (TSX-V:KBLT) and RNC Minerals (TSX:RNX) on Thursday after the companies entered into a royalty deal on all future nickel and cobalt production at RNC Minerals’ Dumont project in Quebec in a deal worth $70 million.
Shares in Toronto-based Cobalt 27 gained as much as 6% in lunchtime trade lifting its market cap to C$440m ($350m) . Investors who bought into the battery metals story when Cobalt 27 listed in June are now enjoying a 45% appreciation in the value of the stock since then. Cobalt 27 stockpiles the metal, holds options on cobalt juniors and enters into streaming and royalty deals in an effort to be a pure play on the cobalt price.
RNC Minerals stock popped 12% shortly after the open on the TSX affording the company a market value C$90m before cooling off in later trade. The Toronto-based firm which changed its name from Royal Nickel Corp in 2016 owns 50% of the Dumont project in the Abitibi mining camp in a joint venture with Waterton, a private equity investor. RNC Minerals is up 43% year to date. Continue Reading →