Published: August 25, 2021 |

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First Cobalt has arranged a combined secured convertible debt and brokered equity financing package with an aggregate value of approximately US$45 million to finance the construction of its wholly-owned hydrometallurgical refinery located in Ontario, Canada.

An offering of US$37.5 million principal amount of 6.95 percent senior secured convertible notes led by Cantor Fitzgerald & Co. and an overnight-marketed public offering of common shares in the capital of the company led by BMO Capital Markets for gross proceeds of approximately US$7.5 million.

“This is one of our most important catalysts for the year, as this financing will allow us to advance construction of our Canadian battery material refinery. Every director and officer is participating in the financing, underlining our confidence in our business strategy and strengthening our alignment with shareholders,” said President and CEO Trent Mell.

“Our vision is to be the most sustainable producer of battery materials, starting with North America’s only domestic supply of battery grade cobalt. Longer term, we are pursuing the creation of a Battery Park around our refinery, which would include battery recycling, nickel sulfate production and lithium-ion battery precursor manufacturing. We intend to capitalize on this first-mover advantage and leverage our position as an ultra-low carbon operation,” added Mell.

The company intends to use the net proceeds for capital expenditures associated with the expansion and recommissioning of the refinery, including buildings, equipment, infrastructure, and other direct costs, as well as engineering and project management costs.

Upon completion of this financing, the company will advance discussions on a non-dilutive working capital facility to cover a minimum liquidity requirement of US$5 million and cobalt hydroxide feed purchases through to the time of sale of cobalt sulfate to market.

About First Cobalt
First Cobalt’s mission is to be the most sustainable producer of battery materials. In 2022, the company plans to commission North America’s only cobalt sulfate refinery, a critical asset in the development and manufacturing of batteries for electric vehicles. First Cobalt also owns the Iron Creek cobalt-copper project in Idaho, USA as well as several significant cobalt and silver properties in the Canadian Cobalt Camp.

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