Cobalt 27 and $WPM will provide Vale an aggregate of US$690 million in upfront proceeds for a combined purchase of finished cobalt equal to 75% of Voisey's Bay cobalt production commencing January 1, 2021.
Cobalt 27 ($KBLT) Acquires US$300MM Cobalt Stream on Vale’s Voisey’s Bay Mine Expansion and Announces C$300MM Bought Deal Offering of Common Shares To Fund Stream Acquisition
- Vale will deliver to Cobalt 27, an amount of finished cobalt equal
to 32.6% of the cobalt production from Voisey’s Bay commencing January
1, 2021.
- 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 January 1, 2021 reaches approximately 33.1kt
(73.0mmlb), the proportion of cobalt production delivered to Cobalt 27
will reduce to 16.3%.
- Cobalt 27 will pay Vale cash consideration of US$300 million upon closing.
- Cobalt 27 will make ongoing payments (the "Ongoing Payments") equal
to 18% of the Cobalt Reference Price 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. After this time, the Ongoing Payments will increase
to 22% of the Cobalt Reference Price.
See the whole press release here:
Cobalt27 Capital Corp. - News Releases
No comments:
Post a Comment
Commented on MasterMetals