Monday, July 3, 2017

Cobalt 27 (KBLT.v) aims high with $200m IPO

Cobalt 27 Capital Corp made its debut on Canada's Venture Exchange raising C$200 million in a listing that offers investors pure exposure to cobalt, a key metal for batteries.
Cobalt 27 owns 2,160 tonnes of cobalt — worth about $125 million, according to LME prices. The cobalt is stored in warehouses in Baltimore, Antwerp and Rotterdam. Most cobalt is a byproduct of copper and nickel production.

Cobalt 27's management is planning to grow the business through royalties and agreements with mining companies to buy all or part of their cobalt output at a fixed, predetermined price. "The company has entered into six agreements to acquire royalties on eight exploration-stage properties containing cobalt, to be acquired immediately following closing of the offering," the company said in an investor presentation.