RCKS Talk

Wednesday, March 14, 2018 Derek Macpherson

FCC Adds U.S. Project in Another Cobalt Camp


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First Cobalt Corp. (TSXV:FCC) has expanded into the US, announcing the all share acquisition of US Cobalt Inc. (TSXV:USCO) valued at C$149.9 million (Figure 1). Under the agreement, all of US Cobalt shares will be exchanged on the basis of 1.5 First Cobalt shares for each US Cobalt share, representing a 61.8% premium to market based on US Cobalt’s closing price of C$1.01. US Cobalt owns the Iron Creek Cobalt Project within the Idaho Cobalt Belt in Idaho, located 28km south of eCobalt’s Idaho Cobalt Project (Figure 2). The project hosts a historic resource estimate (non-compliant with NI 43-101) of 1.3Mt grading 0.59% Co, which the company is looking to upgrade to a compliant resource and complete a maiden resource later in 2018. We view the transaction positively as it provides diversity for First Cobalt outside the Cobalt Camp, adding to its large portfolio of cobalt assets in another mining friendly jurisdiction (outside the DRC) as well as adding resources. We view the deal positively and believe based on its friendly nature and substantial premium, it is very likely to be completed.




Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
Alex Pitcher | Associate

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Company Specific Disclosure Details
First Cobalt Corp. - TSXV:FCC - 1,2
US Cobalt Inc. - TSXV:USCO - None

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