https://www.miningweekly.com

First Cobalt secures $45m for refinery construction

24th August 2021

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

Font size: - +

Battery materials company First Cobalt has secured a $45-million debt and brokered equity financing package for the construction of its refinery in Ontario, it announced on Monday.

"This is one of our most important catalysts for the year, as this financing will allow us to advance construction of our Canadian battery material refinery," said president and CEO Trent Mell.

"Every director and officer is participating in the financing, underlining our confidence in our business strategy and strengthening our alignment with shareholders.”

The financing consists of an offering of $37.5-million principal amount of 6.95% senior secured convertible notes due December 1, 2026, led by Cantor Fitzgerald & Co, and an overnight-marketed public offering of common shares, led by BMO Capital Markets, for gross proceeds of C$9.5-million.

First Cobalt said that the note and equity offering would replace the debt financing process announced at the end of March, stating that the financing terms and covenants of the new financing were superior to the debt financing previously pursued.

The proceeds of the finance would be used for capital expenditure associated with the expansion and recommissioning of the refinery, including buildings, equipment, infrastructure, and other direct costs, as well as engineering and project management costs. 

"Our vision is to be the most sustainable producer of battery materials, starting with North America's only domestic supply of battery grade cobalt. Longer term, we are pursuing the creation of a Battery Park around our refinery, which would include battery recycling, nickel sulphate production and lithium-ion battery precursor manufacturing. We intend to capitalise on this first-mover advantage and leverage our position as an ultra-low carbon operation,” said Mell.

The refinery, which will be North America’s only cobalt sulphate refinery, will be commissioned in 2022.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

ABB Electrification
ABB Electrification

Electrifying the world in a safe, smart, and sustainable way, ABB Electrification is a global technology leader in electrical distribution and...

VISIT SHOWROOM 
Environmental Impact Management Services
Environmental Impact Management Services

EIMS is an independent specialised environmental consulting firm offering the full spectrum of environmental management services across all sectors...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.041 0.832s - 110pq - 2rq
Subscribe Now