To deliver immediate attributable nickel and
cobalt production from the long-life, world-class Ramu
Mine
TORONTO, May 17, 2019 /CNW/ - Cobalt 27 Capital
Corp. ("Cobalt 27" or the "Company") (TSXV:
KBLT)(OTCQX: CBLLF)(FRA: 27O), is pleased
to announce the completion of the previously announced scheme of
arrangement (the "Scheme") whereby Cobalt 27 acquired all of the
issued and outstanding shares of Highlands Pacific Limited
("Highlands"), further building on Cobalt 27's position as a
leading high-growth, diversified battery metals streaming and
royalty company.
As a result of the acquisition, Cobalt 27 now holds an 8.56%
joint venture interest in the producing Ramu mine ("Ramu"), a
long-life, low-cost nickel-cobalt operation located near Madang on
the north coast of Papua New
Guinea ("PNG"). Ramu was financed, constructed and
commissioned in 2012, by majority-owner and operator Metallurgical
Corporation of China Limited ("MCC"), for US$2.1 billion which, at the time, was
China's largest overseas mining
investment. In 2018, the Ramu mine achieved record annual
production of 35,355 tonnes of nickel and 3,275 tonnes of
cobalt. Following repayment of Highlands' attributable
construction and development loans, Cobalt 27's ownership interest
in the Ramu mine, and attributable nickel and cobalt production,
would increase to 11.3%.
"We are very pleased to announce the closing of the Highlands
acquisition and joint venture interest in the producing Ramu
nickel-cobalt mine," said Anthony
Milewski, Chairman and Chief Executive Officer. "We
look forward to working with owner and operator Metallurgical
Corporation of China, to advance
the mine to its full potential for decades to come. With the
completion of this acquisition, we have significantly strengthened
Cobalt 27's asset base and are well positioned to deliver long-term
shareholder value."
Scheme of Arrangement
Under the terms of the
Scheme, Cobalt 27 acquired all of the issued and outstanding
ordinary shares of Highlands that it did not already own (the
"Scheme Shares") for an all-cash offer price of A$0.105 per share (the "Base Purchase Price").
In addition, if before December 31,
2019, the London Metal Exchange official closing cash
settlement price for nickel is US$13,220 per tonne or higher for a period of 5
consecutive trading days, Cobalt 27 will also pay additional
contingent consideration of A$0.010
per Scheme Share in cash (the "Contingent Purchase Price"). The
Base Purchase Price consideration offered for all of the Scheme
Shares is valued at approximately US$64
million which was funded with available cash and
credit. The Contingent Purchase Price consideration of
US$6 million will be held in escrow
and funded with available credit. Cobalt 27 anticipates closing the
PanAust buyback agreement, which results in the transfer of
Highlands Frieda River joint venture interest to PanAust, shortly
after closing which will result in the return of approximately
US$9.4 million of the Base Purchase
Price. Highlands' common shares were suspended from trading
on the Australian Securities Exchange ("ASX") and the Port Moresby
Stock Exchange ("POMSoX") on May 3,
2019, pending removal from the official list of the ASX and
POMSoX, scheduled for May 20,
2019.
About Cobalt 27 Capital Corp.
Cobalt 27
Capital Corp. is a leading battery metals streaming company
offering exposure to metals integral to key technologies of the
electric vehicle and energy storage markets. The Company owns
physical cobalt and a 32.6% Cobalt Stream on Vale's world-class
Voisey's Bay mine, beginning in 2021. Cobalt 27 holds an
8.56% joint venture interest in the long-life, world-class Ramu
Mine which is expected to deliver immediate attributable nickel and
cobalt production. The Company also manages a portfolio of 11
royalties and intends to continue to invest in a cobalt and nickel
focused portfolio of streams, royalties and direct interests in
mineral properties containing battery metals.
For further information please visit the Company website at
www.cobalt27.com or contact:
Betty Joy LeBlanc, BA, MBA
Director, Corporate Communications
+1-604-828-0999
betty@cobalt27.com
Forward-Looking Information
This news
release contains certain information which constitutes
'forward-looking statements' and 'forward-looking information'
within the meaning of applicable Canadian securities laws.
Forward-looking statements in this news release include, without
limitation: statements pertaining to the benefits to the Company of
the acquisition of Highlands and the future performance of Ramu;
statements pertaining to the repayment of Highlands' attributable
construction and development loans; statements pertaining to the
completion of the PanAust buyback agreement; and statements
pertaining to the payment of the Contingent Purchase Price.
Forward-looking statements involve known and unknown risks
and uncertainties, most of which are beyond the Company's control.
For more details on these and other risk factors see the Company's
most recent Annual Information Form on file with Canadian
securities regulatory authorities on SEDAR at www.sedar.com under
the heading "Risk Factors". Should one or more of the risks or
uncertainties underlying these forward-looking statements
materialize, or should assumptions underlying the forward-looking
statements prove incorrect, actual results, performance or
achievements could vary materially from those expressed or implied
by the forward-looking statements. Accordingly, undue reliance
should not be placed on these forward-looking statements.
The forward-looking statements contained herein are made as
of the date of this release and, other than as required by
applicable securities laws, the Company does not assume any
obligation to update or revise it to reflect new events or
circumstances. The forward-looking statements contained in this
release are expressly qualified by this cautionary
statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. No securities regulatory authority has
either approved or disapproved of the contents of this news
release.
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SOURCE Cobalt 27 Capital Corp