Canada’s First Cobalt debuts on ASX after tie-up with Cobalt One
Link copied to
Canadian player First Cobalt has completed its goal of becoming an ASX listed company following its all-scrip merger with Australian junior Cobalt One.
First Cobalt (ASX:FCC) closed its first trading session on the Australian bourse at $1.45, valuing the new company at around $154.6 million. Over half a million shares changed hands.
The merger was expected to create the “largest listed cobalt exploration company”, First Cobalt and Cobalt One said back when the tie-up was announced.
Demand for cobalt is expected to grow because of its use in lithium cobalt oxide electrodes — a common lithium ion battery technology used in electric cars.
Bloomberg New Energy Finance estimates electric cars will account for 2 per cent of the market by 2020, rising to 8 per cent by 2025 and 20 per cent by 2030.
First Cobalt and Cobalt One first announced their friendly merger back in June, with the aim of improving liquidity and access to capital in Canada and Australia.
The combined company has around C$1.8 million (A$1.84 million) cash in the bank.
First Cobalt is now the dominant landholder in the “Cobalt camp” region of Ontario, Canada, with ownership of almost half the prospective properties.
The company has added Cobalt One’s seven high-grade cobalt properties to its existing portfolio of three former producing mines and interests in seven copper-cobalt properties.
First Cobalt indicated previously that it would undertake a review of its projects following completion of the merger. It also flagged plans for an additional 10,000m or more of drilling across its projects.