TSX-V-listed First Cobalt has entered into an exclusivity agreement with a financial institution for $45-million in debt financing to fund the capital cost relating to the recommissioning and expansion of its refinery in Ontario.
The exclusivity period provides the basis for which the lender will complete its remaining due diligence requirements prior to the negotiation of definitive documentations.
“Progression into an exclusivity phase for a debt facility without a royalty or stream represents a key milestone in securing the remaining capital needed to restart the First Cobalt refinery and brings us one step closer to our vision of producing the world’s most sustainable cobalt,” said CEO Trent Mell.
The financing process, which is being led by CIBC Capital Markets, is expected to be completed prior to announcement of a formal construction decision.
In December, the government of Canada and the government of Ontario announced a joint $10-million investment in the First Cobalt refinery to help accelerate commissioning and expansion.
Permitting remains on schedule, supporting a commencement of construction in mid-2021.