Cobalt Blue Holdings nets $100,000 from options as cobalt strategy advances
The company has issued more than 400,000 new shares after the quoted options (ASX:COBO) were exercised at $0.25 each.
This represents a healthy discount to the current price of the options, which is $0.365.
Cobalt Blue’s shares are trading at $0.60 and since 20 November 2017 have risen from $0.23, reaching a record high of $0.89 in late December.
The company is due to deliver a pre-feasibility study for its Thackaringa Cobalt Project near Broken Hill in far west New South Wales by mid-2018.
The project area is under-explored, with the vast majority of historical exploration directed at or around outcropping pyritic cobalt deposits at Pyrite Hill, Big Hill and Railway deposits.
These deposits comprise 54.9 million tonnes at 910 ppm cobalt, 9.56% sulphur and 10.9% iron for 49,986 tonnes of cobalt.
Potential to extend resource
Potential to extend the mineral resource at these deposits and other Thackaringa prospects is high.
It has a 51% beneficial interest and subject to the achievement of milestones, will be entitled to acquire 100%.
Broken Hill Prospecting remains the registered holder of the project tenements until the farm-in is complete.
Cobalt Blue has also recently signed an MOU to use its proprietary technology to determine whether cobalt from sulphide ore at Havilah Resources’ (ASX:HAV) Mutooroo copper-cobalt deposit can be recovered economically.
Mutooroo is west of the Thackaringa deposit, where metallurgical work has identified a potential processing path demonstrating strong cobalt recoveries for pyrite hosted cobalt.
The parties believe Mutooroo may have similar metallurgical requirements to commercialise cobalt.