Koba Resources, which owns projects in the Idaho cobalt belt of the US, will seek to raise A$8-million in an initial public offering (IPO) and plans to list on the ASX in late April, Australian firm New World Resources reported on Monday.
New World is demerging Koba to create a new standalone cobalt-focused company led by mining executive Ben Vallerine.
Koba will issue 40-million new shares at A$0.20 each, with the right to accept oversubscriptions of up to A$1-million, to fund further exploration and development of its cobalt assets.
New World reported that 20-million existing Koba shares would be distributed, in-specie, to eligible New World shareholders and that shareholders would be entitled to participate in a priority offer of up to 15-million new shares.
Koba’s assets include the Blackpine project, which historically produced 6 000 t of ore, grading 2% cobalt. Koba is acquiring Blackpine from ASX-listed Jervois Global.
Its other assets near Salmon, in Idaho, include the 1 550-ha Colson cobalt/copper project, where several hundred tonnes of ore were mined from the historical Salmon Canyon mine between 1964 and 1979; the Panther project, which comprises 107 unpatented mining claims covering 870 ha near both Jervois’ Idaho Cobalt Operation and Glencore’s Blackbird deposit; as well as the Elkhorn cobalt project, which comprises 28 federal unpatented mining claims covering 227 ha.
Koba also owns the Goodsprings copper/cobalt project, in Nevada.