VANCOUVER (miningweekly.com) – Canadian clean cobalt project developer eCobalt has launched a C$26-million bought-deal financing.
The Vancouver-based company has signed an agreement with a syndicate of underwriters led by TD Securities, under which the underwriters have agreed to buy, on a bought-deal basis, 20-million units of the company at a price of C$1.30 each.
Each unit consists of one eCobalt common share and one-half of one common share purchase warrant. Each warrant entitles the holder to buy one common share at a strike price of C$1.95 for a period of 18 months following the closing date.
Should the overallotment option be exercised, the underwriters can buy up to three-million further units, lifting the total gross proceeds of the offering to the company to C$30-million.
eCobalt on Tuesday said it intends to use the net proceeds of the offering for advancing the development of the flagship Idaho Cobalt project, supporting preconstruction activities at the mine and mill site in preparation for production, support engineering for the new mine design and for general working capital purposes.
Cobalt prices continue to climb and recently hit more than $37/lb, as the energy metal's use in lithium-ion batteries intensifies amid supply pressure.