First Cobalt adds to Idaho cobalt project with Phoenix partnership
The Redcastle project is adjacent to First Cobalt's Iron Creek property (pictured).
Emerging miner and explorer Phoenix Copper on Monday announced that Toronto-listed First Cobalt would earn into its Redcastle cobalt property on the Idaho cobalt belt, in the US.
The property shares a common border with First Cobalt’s Iron Creek property, which hosts an indicated cobalt and copper resource of 2.37-million tonnes, grading 0.32% cobalt and 0.61% copper.
First Cobalt CEO Trent Mell said that the Redcastle property was only 750 m east of the company's Ruby Zone cobalt/copper prospect, which is exposed at surface.
"The host rock sequence to the sulphide mineralisation is interpreted to extend to the Redcastle property, so we believe the prospectivity of this area is quite high."
In addition to the local infrastructure, First Cobalt also owns the only cobalt refinery in North America, located in Ontario. The refinery would receive cobalt from the Idaho operations.
Phoenix CEO Ryan McDermott said that the company was “delighted” to be partnering with First Cobalt.
He said the capital cost savings to Phoenix were likely to be considerable, given that the Redcastle ore would be mined and processed as an extension to First Cobalt’s Iron Creek mine.
“Both Phoenix and First Cobalt recognise the potential future synergies as we work together on the Idaho Cobalt Belt, whilst at the same time enabling us to focus on our base and precious metals projects at Empire,” said McDermott.
In consideration of signing the agreement, First Cobalt would pay $50 000 and issue 200 000 unrestricted shares to Phoenix. The Canadian company could earn a 51% interest in the Redcastle property by spending at least $1.5-million in exploration over three years, and by paying a further $100 000 to Phoenix on the third anniversary of the agreement.
Subject to the completion of Phase 1, First Cobalt may earn an additional 24% interest by spending another $1.5-million over two years and by paying a further $150 000 to Phoenix in cash or the equivalent in unrestricted First Cobalt shares. Thereafter, the companies would enter into a joint venture.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation