{"id":1093027,"date":"2019-01-07T21:35:17","date_gmt":"2019-01-07T21:35:17","guid":{"rendered":"http:\/\/resourceworld.com\/?p=54635"},"modified":"2019-01-07T21:35:17","modified_gmt":"2019-01-07T21:35:17","slug":"cobalt-27-adds-lithium-royalty-to-portfolio","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1093027","title":{"rendered":"Cobalt 27 adds lithium royalty to portfolio"},"content":{"rendered":"
\"\"<\/a><\/p>\n

The Mount Marion lithium mine in Western Australia. Source: Mineral Resources Ltd.<\/p>\n<\/div>\n

Cobalt 27 Capital Corp.<\/strong> [KBLT-TSXV; 270-FSE] said Monday January 7 that it has boosted its portfolio by acquiring a lithium royalty on the producing Mount Marion Lithium Mine in Western Australia.<\/p>\n

The royalty being acquired consists of 1.5% of gross revenues and AUD$2 per tonne of ore mined under the Reed Industrial Minerals Pty Ltd. sub-lease agreement held by Westgold Resources Ltd. on the Mount Marion Mine.<\/p>\n

Cobalt is acquiring the royalty from Westgold and will pay $240,400, plus 200 tonnes of physical cobalt metal to be delivered to a LME-bonded warehouse of Westgold\u2019s choice.<\/p>\n

Cobalt 27 shares advanced on the news, rising 2.87% or $0.12 to $4.30. The shares are trading in a 52-week range of $14 and $3.36.<\/p>\n

Cobalt 27 Capital is a leading battery metals streaming company, offering exposure to metals integral to key technologies of the electric vehicle and energy storage markets.<\/p>\n

It is also the holder of the world\u2019s largest stockpile of physical cobalt. The company owns 2,905.7 tonnes of physical cobalt and a 32.6% stream on the Vale SA<\/strong>\u2019s [VALE-NYSE] Voisey\u2019s Bay nickel mine in Labrador. Acquisition of the lithium royalty is being largely funded by a small percentage (7%) of Cobalt 27s existing holdings of cobalt.<\/p>\n

\u201cWe are committed to becoming a proxy for the large-scale transition to battery-based electric vehicles and energy storage systems. We are also intensely focused on accelerating near-term cash flow from battery metals streams and royalties,\u201d said Cobalt 27 Chairman and CEO Anthony Milewski.<\/p>\n

Brines (in salt ponds) and spodumene (hard rock) represent the two main sources of commercial lithium production.<\/p>\n

The producing Mount Marion lithium mine has the world\u2019s second largest high-grade lithium concentrate \u2013 spodumene reserves. Production of lithium concentrate from the open-pit mine began in early 2017. Spodumene is the hard rock mineral of lithium ore, as opposed to lithium brines in salt lakes.<\/p>\n

\u201cThis transaction diversifies our portfolio of battery metals into lithium and exemplifies our core strategy of solidifying Cobalt 27 as a leading battery metals streaming and royalty company,\u201d Milewski said.<\/p>\n

The Mount Marion lithium mine is jointly owned by one of China\u2019s largest lithium producers, Jiangxi Ganfeng Lithium Co. Ltd.<\/strong> (43.1%), Mineral Resources Ltd.<\/strong> [MIN-ASX] (43.1%) and Neometals Ltd.<\/strong> [NMT-ASX] (13.8%).<\/p>\n

News of the lithium deal comes after Cobalt 27 recently announced the friendly acquisition of Australian Securities Exchange-listed Highlands Pacific Ltd.<\/strong> [HIG-ASX] in a $96 million transaction.<\/p>\n

Highlands\u2019 primary assets include an 8.56% stake in the producing Ramu Mine and a 20% interest in the Frieda River copper-gold project. Both are located in Papua New Guinea.<\/p>\n

Ramu is a large scale nickel-cobalt mine with estimated reserves of one billion pounds of nickel and 100 million pounds of cobalt. Ramu exceeded annual production projections in 2017, reporting net cash flow of US$170 million on production of 34,666 tonnes of contained nickel and 3,308 tonnes of contained cobalt.<\/p>\n

Ramu produces 3% of annual global mined cobalt as a by-product has an estimated mine life of 30 years.<\/p>\n","protected":false},"excerpt":{"rendered":"

Cobalt 27 Capital Corp. [KBLT-TSXV; 270-FSE] said Monday January 7 that it has boosted its portfolio by acquiring a lithium royalty on the producing Mount Marion Lithium Mine in Western… Read more »<\/a><\/span><\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[622],"tags":[288],"class_list":["post-1093027","post","type-post","status-publish","format-standard","hentry","category-resources","tag-lithium"],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1093027","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1093027"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1093027\/revisions"}],"predecessor-version":[{"id":1093028,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1093027\/revisions\/1093028"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1093027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1093027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1093027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}