TSX-V-listed First Cobalt is moving directly to an expansion scenario at its cobalt refinery, north of Toronto, and will conduct pilot plant work at third-party facilities, saving millions of dollars.
An onsite demonstration plant would have required "severl million dollars" of additional investment that would not have been credited toward the 55/td expansion, currently estimated at $56-million, the company said on Wednesday.
"EV manufacturers expressed no preference for an on-site demonstration plant, as final product qualification will be conducted from material produced at the expanded refinery. Management is pleased with this outcome as it will reduce costs and complexities and allow the project team to focus its efforts on building a globally competitive facility that will be the only North American refinery of cobalt sulphate," First Cobalt said in a project update.