Sign up Australia
Proactive Investors - Run By Investors For Investors

Fe Limited acquires rights to copper-cobalt project

Cobalt prices have more than doubled over the past 12 months.
Periodic table details of cobalt
The company will now commence due diligence on the transaction

Fe Limited (ASX:FEL) has entered into a binding terms sheet for rights and obligations to the Kasombo Copper-Cobalt Project located in the Democratic Republic of Congo (DRC).

The rights and obligations are being acquired from Cape Lambert Resources (ASX:CFE) who established the rights through entering a 50:50 joint venture with a Congolese entity.

The Kasombo Project is located amongst some of the world’s largest and highest grade copper and cobalt mines.

Tony Sage, chairman, commented: “The acquisition of the Kasombo Project will provide FEL an ideal opportunity to build a portfolio of cobalt assets in the established cobalt producing region of DRC and nearby to the Kipushi Processing Plant.

“The car industry’s push toward electric vehicles underpins the burgeoning market for cobalt, a key metal for car batteries.”

Kasombo summary

The Kasombo Copper-Cobalt Project is located in an area with excellent infrastructure and the world’s major cobalt mining region.

The region accounts for ~50% of the world's cobalt reserves and ~60% of global cobalt supply.

The project consisted of three mineralised areas totalling 600 hectares within two granted mining licences.

Handheld XRF sampling of artisanal cobalt workings and exposed cobalt mineralisation at the Kasombo Copper-Cobalt Project areas confirm high cobalt and copper grades.

An exploration plan is ready to commence and the project has access to the nearby Kipushi Processing Plant.

Transaction details

Pursuant to Cape Lambert’s obligations under the joint venture agreement, the objectives of the Fe Limited will be to:

- Undertake the exploration activities at the Kasombo Project;
- Complete a feasibility study on the Kasombo Project within 18 months; and
- To commence mining activities at the Kasombo Project within 24 months.
The company will pay a cash and share component for consideration for acquiring the rights, totalling 35 million shares and $125,000.

Settlement of the transaction is conditional upon due diligence among other things, to be completed on or before 30 September 2017.

Analysis

The transaction provides Fe Limited with exposure to the metal cobalt, which is currently trading at prices of US$60,000 per tonne.

Increasing cobalt prices are a result of increased demand due to the use of cobalt in electric vehicle batteries and constrained supply.

As a result of these market dynamics, major mining companies have been aggressively acquiring cobalt projects in the DRC.

Shares in the company are trading up 7.7% intra-day, currently priced at $0.028.





Register here to be notified of future FEL Company articles
View full FEL profile View Profile

Fe Limited Timeline

Related Articles

Colin Bird
August 29 2017
Xtract Resources is on the cusp of significant cashflow, generated by alluvial gold production from Mozambique
1511183786_Lithium-drill-core---Cinovec.jpg
November 21 2017
European Metals Holdings is rapidly moving forward with Europe's largest and most significant lithium project
Tyranna Resources' Bruno Seneque discussed pending gold assays at Proactive's CEO Sessions
July 27 2017
Bruno Seneque talked gold discovery streak at Proactive's CEO Sessions.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use