{"id":1141488,"date":"2019-10-01T16:39:55","date_gmt":"2019-10-01T21:39:55","guid":{"rendered":"https:\/\/www.mining.com\/?p=1003367"},"modified":"2019-10-01T16:39:55","modified_gmt":"2019-10-01T21:39:55","slug":"pala-investments-sweetens-acquisition-deal-for-cobalt-27-by-23m-shares-up","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1141488","title":{"rendered":"Pala Investments sweetens acquisition deal for Cobalt 27 by $23m, shares up"},"content":{"rendered":"<p>Private Swiss firm&nbsp;Pala Investments&nbsp;and&nbsp;Cobalt 27 Capital&nbsp;(TSXV: KBLT)&nbsp;on Tuesday <a rel=\"noreferrer noopener\" aria-label=\"announced&nbsp;a $23 million boost (opens in a new tab)\" href=\"https:\/\/www.cobalt27.com\/investors\/news-releases\/pala-investments-and-cobalt-27-announce-significant-improvements-to-arrangement-transaction-and-new-shareholders-meeting-date-of-october-11-2019\" >announced&nbsp;a $23 million boost<\/a>&nbsp;to the&nbsp;previously announced&nbsp;100% acquisition&nbsp;deal.&nbsp;<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>Pala increased&nbsp;cash consideration&nbsp;to C$4 per share, up from C$3.57&nbsp;\u2014&nbsp;adding C$30 million ($23m) to the<a rel=\"noreferrer noopener\" aria-label=\" deal that created&nbsp;Nickel 28  (opens in a new tab)\" href=\"https:\/\/www.mining.com\/pala-investments-to-acquire-cobalt-27-for-375m-create-new-company-nickel-28\/\" > deal that created&nbsp;Nickel 28 <\/a>Capital, which will retain Cobalt 27\u2019s existing nickel focused assets. <\/p>\n<p>Pala will also repay Cobalt 27\u2019s net debt, leaving Nickel 28 with no corporate debt and funding of $5 million cash upon closing.&nbsp;<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Cobalt 27&#8217;s royalty portfolio includes a 2% net smelter return on the Turnagain project,&nbsp;one of the largest undeveloped&nbsp;nickel-cobalt&nbsp;sulphide&nbsp;deposits in the world&nbsp; <\/p>\n<\/blockquote>\n<\/figure>\n<p>The amended deal gives Cobalt 27 shareholders C$5.92 per share, comprised of C$4 in cash plus, one share of Nickel 28 with an implied value of C$1.92 per share.\u00a0\u00a0<\/p>\n<p>Cobalt 27 currently owns a&nbsp;<a href=\"https:\/\/www.mining.com\/cobalt-27-acquire-asx-listed-highlands-pacific\/\"  rel=\"noreferrer noopener\">joint venture<\/a>&nbsp;interest (8.56%) in Ramu, a producing nickel-cobalt mine located near Madang on the north coast of Papua New Guinea. The mine was financed, constructed and commissioned by majority-owner and operator Metallurgical Corporation of China in 2012 for $2.1 billion, which at the time was China\u2019s largest overseas mining investment. Last year Ramu achieved production of 35,355&nbsp;tonnes&nbsp;of nickel and 3,275&nbsp;tonnes&nbsp;of cobalt.&nbsp;<\/p>\n<p>Cobalt 27 also holds streams and royalties on various projects across Canada. The company previously&nbsp;<a href=\"https:\/\/www.mining.com\/web\/cobalt-27-agrees-streaming-finance-deal-australian-miner\/\"  rel=\"noreferrer noopener\">acquired a cobalt stream<\/a>&nbsp;on Vale\u2019s Voisey\u2019s Bay mine in Newfoundland and Labrador, which allows Cobalt 27 to receive 32.6% of the mine\u2019s production beginning in 2021. The company\u2019s royalty portfolio includes a 2% net smelter return on the Turnagain project in British Columbia,&nbsp;<a href=\"https:\/\/www.cobalt27.com\/our-assets\/royalties\/turnagain-nickel-cobalt-royalty\/\"  rel=\"noreferrer noopener\">one of the largest undeveloped<\/a>&nbsp;nickel-cobalt&nbsp;sulphide&nbsp;deposits in the world.&nbsp;&nbsp;<\/p>\n<p>Shareholder Anson Funds, which had not disclosed its stake in Cobalt 27, had earlier opposed the deal, stating it &#8216;undervalued&#8217; the company, Reuters reported.&nbsp;&nbsp;<\/p>\n<p>\u201cWe are pleased to provide these significantly improved transaction terms to Cobalt 27 shareholders on a best and final basis, Stephen Gill<strong>,\u00a0<\/strong>Managing Partner of Pala said. &#8220;We believe that these terms are responsive to shareholder feedback and fully value the\u00a0company.\u201d\u00a0<\/p>\n<p>By market close&nbsp;Tuesday, &nbsp;Cobalt&nbsp;27\u2019s shares were up 4%. Trading volume reached $1 million, over 5 times the average daily volume of 187,000. The company has a C$355 million market capitalization.&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shareholders had earlier opposed the deal, stating it &#8216;undervalued&#8217; the company.<\/p>\n","protected":false},"author":5,"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":"","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":"","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-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-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-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-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-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-gradient":""}},"footnotes":""},"categories":[1016,369,4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1141488"}],"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\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1141488"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1141488\/revisions"}],"predecessor-version":[{"id":1141501,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1141488\/revisions\/1141501"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1141488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1141488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1141488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}