First Cobalt Corp. announced that US Cobalt has received a final order from the Supreme Court of British Columbia approving the previously announced acquisition by First Cobalt.
The acquisition of US Cobalt will enhance First Cobalt’s position as a vertically integrated pureplay cobalt company with three significant North American assets: 50 past producing mines in the Canadian Cobalt Camp, the Iron Creek Project in Idaho, USA, and the only permitted cobalt refinery in North America capable of producing battery materials.
A resource estimate for the Iron Creek Project is anticipated by October 2018.
Subject to obtaining all required regulatory and government approvals, it is anticipated that the Transaction will be completed on or about May 31, 2018.
First Cobalt has also agreed to provide a bridge loan to US Cobalt for up to $5 million to maintain the current drill program at the Iron Creek Project until the close of the Transaction. Subject to regulatory approval, the bridge loan will be a demand promissory note having a term of two years and bearing interest at prime plus 1%. Upon completion of the Transaction, the bridge loan will become intercompany debt and terminated. If the Transaction is terminated, First Cobalt may demand repayment of all accrued interest and the principal amount owing under the bridge loan.
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