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Winmar Resources attracts $3.1 million for cobalt opportunities in DRC, shares surge

The company is a leading ASX gainer, increasing 185% intra-day to 1.7 cents, a new 12-month high, on volume of more than 450 million.
cobalt on the elementary table
Apple took markets by surprise recently when it entered into talks directly with cobalt miners

Winmar Resources Ltd (ASX:WFE) has secured commitments to raise circa $3.1 million via a private placement of shares at 0.5 cents to professional and sophisticated Investors.

The new funds will be used for due diligence on potential new cobalt acquisitions in the Democratic Republic of Congo (DRC) and up-front payments on any new acquisitions made.

Cobalt is a key battery metal

Cobalt is a key ingredient in new-age batteries used for electric vehicles and energy storage, and prices have surged.

The LME (London Metal Exchange) cobalt price is about US$88,000 a tonne, or about 66% higher than a year ago.

Apple (NASDAQ:AAPL) took markets by surprise recently when it entered into talks directly with miners of cobalt. Cobalt is critical for the production of batteries for cellphones.

Focused on the prime cobalt producing region of the world

Winmar is seeking to acquire exploration and mining licenses in the DRC that are considered highly prospective for cobalt and with the capability to be advanced rapidly towards production.

It is worth noting that the DRC presently accounts for over 60% of the world’s supply of cobalt.

It is generally agreed in industry circles that the region will remain the primary source of cobalt into the foreseeable future.

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