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Cobalt Blue Holdings serves joint venture dilution notice

The company announced its advancement to a 93.68% beneficial interest in the Thackaringa Joint Venture.
Cobalt sulphate crystals
Cobalt sulphate produced from tests of ore from the Thackaringa Cobalt Project

Cobalt Blue Holdings Ltd (ASX:COB) believes it has advanced to a 93.68% beneficial interest in the Thackaringa Joint Venture (TJV), which holds the Thackaringa Cobalt Project in far west New South Wales.

In a statement today, the pure-play cobalt company announced that a non-payment of Called Sums by JV partner Broken Hill Prospecting Ltd (ASX:BPL) had diluted their equity interest down to 6.32%.

“Committed to providing clarity”

COB chairman Rob Biancardi said: “COB is committed to providing clarity to the market, whilst protecting the interests of the project and our shareholders remains very important to us.

“Today’s announcements should remove doubt from investor’s minds.”

READ: Cobalt Blue chairman buys stock valued at more than $30,000 on-market

On Monday, at the request of the ASX, COB outlined the steps it had undertaken to reach this point.

This release included a full copy of the Joint Venture Agreement (JVA), which COB believes will allow investors much greater clarity on the current situation.

In today’s statement COB said it “is committed to protecting the rights of its shareholders and focused upon near-term exploration activities that are a fundamental part of its joint venture with BPL”.

READ: Cobalt Blue drilling targets resource upgrade and growth at Thackaringa

The company estimates that once the drilling campaign expenditure for November and December 2018 has been incurred, which has been approved by the TJV, BPL’s equity interest will be below 5%.

This is expected to occur by January 2019.

It said that the JVA had a minimum interest level of 5%, below which a joint venturer was deemed to have withdrawn from the JV.

READ: Cobalt Blue CEO steps up and buys stock on-market

According to the statement, “COB has served notice to BPL that it wishes to pursue its rights.”

Cobalt Blue is an exploration and project development company focused on green energy technology and strategic development to upgrade its mineral resource at the Thackaringa project from inferred to indicated status.

READ: Cobalt Blue will use review to improve technical robustness of world-class cobalt project

The company believes there is potential to extend the resources at the Pyrite Hill, Big Hill and Railway deposits as well as other prospects.

Numerous other prospects within the tenement package are at an early stage and under-explored.

View full COB profile View Profile

Cobalt Blue Holdings Ltd Timeline

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