![]() ![]() Under the terms of the Cobalt Stream, Vale has agreed that if mill throughput does not reach 85% of targeted levels by December 31, 2025, some or all of the Advance Amount may be refunded to Cobalt 27 and/or the applicable cobalt stream percentages may be increased. As previously announced on June 11, 2018, once an aggregate of approximately 10.8kt (23.8mmlb) of cobalt has been delivered to Cobalt 27, which would occur once Voisey's Bay cobalt production after Janureaches approximately 33.1kt (73.0mmlb), the proportion of cobalt production delivered to Cobalt 27 will reduce to 16.3%. ![]() Total estimated capital expenditures to complete construction and commissioning of the VBME are estimated by Vale to be approximately US$1.7 billion and will extend the life of mine to 2034. Vale recently confirmed its plans to proceed with the construction of the VBME, with its first full year of production scheduled for 2021. We expect a stream on this world-class, low-cost, long-life asset to be rewarded in the market and build the foundation for a value re-rating of our Company’s shares.” At current cobalt spot prices, the Voisey’s Bay Cobalt Stream is expected to add significant cash flow to Cobalt 27, for an initial 14 year mine life, beginning in 2021. The Cobalt Stream will be settled by Vale delivering to Cobalt 27 cobalt metal stored in warehouse in the form of warehouse certificates. Cobalt 27 is expecting to purchase approximately 1.6 million pounds of cobalt per year during the 2021 to 2024 ramp-up, increasing to approximately 1.9 million pounds of cobalt per year during full-scale production starting in 2025. In total, Cobalt 27 and WPM have provided Vale an aggregate of US$690 million in upfront proceeds for a combined purchase of finished cobalt equal to 75% of Voisey's Bay cobalt production commencing January 1, 2021.Īnthony Milewski, Chairman and Chief Executive Officer of Cobalt 27 commented, “The Voisey’s Bay Cobalt Stream is a milestone achievement in our pursuit of building the world’s premier investment vehicle to play the electric vehicle and battery energy storage revolution. ![]() The closing of this transaction is in conjunction with Vale completing a separate streaming agreement with Wheaton Precious Metals Corp. After this time, the Ongoing Payments will increase to 22% of the Cobalt Reference Price. Cobalt 27 will also make ongoing payments (the "Ongoing Payments") equal to 18% of the Cobalt Reference Price 1 for each pound of cobalt delivered under the Cobalt Stream, until Cobalt 27 has recovered the full value of the Advance Amount through Vale's deliveries of finished cobalt under the Cobalt Stream. The Company has paid to Vale total upfront cash consideration of US$300 million, which represents a prepayment of a portion of the purchase price for the sale of cobalt to Cobalt 27 (the “Advance Amount”). ("Vale"), of the world’s first pure cobalt stream, being an amount of finished cobalt equal to 32.6% of the cobalt production from Vale’s Voisey’s Bay Mine, including from the proposed Voisey's Bay Mine Expansion (the "VBME", and collectively, "Voisey's Bay"), commencing January 1, 2021, (the "Cobalt Stream"). (“Cobalt 27” or the “Company”) (TSXV: KBLT)(FRA: 27O) is pleased to announce that the Company has closed its previously announced acquisition from a subsidiary of Vale S.A. Toronto, Ontario - JCobalt 27 Capital Corp. ![]() NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES 32.6% Cobalt Stream to deliver approximately 1.9 million pounds of cobalt per year to Cobalt 27, to be settled in physical delivery for the life of the mine ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |