logo-loader
viewCobalt Blue Holdings Ltd

Cobalt Blue will acquire 100% ownership and legal title of Broken Hill Cobalt Project

The company has executed a binding Heads of Agreement with Broken Hill Prospecting that will result in dissolution of the Thackaringa Joint Venture.

Cobalt Blue Holdings Ltd - Cobalt Blue will acquire 100% ownership and legal title of Broken Hill Cobalt Project
The Independent Expert Determination has been a catalyst for discussions

Cobalt Blue Holdings Ltd (ASX:COB) will acquire 100% ownership and legal title of the Broken Hill Cobalt Project as part of an agreement with Broken Hill Prospecting Ltd (ASX:BPL).

The two companies have executed a binding Heads of Agreement (HOA) which will result in dissolution of the Thackaringa Joint Venture (TJV) and provide COB with full control and continuing management of the project.

This agreement follows the Independent Expert Determination on Monday that confirmed that COB and BPL have 70:30 respective interests in the project.

Catalyst for discussions

COB and BPL have used the determination as a catalyst for discussion resulting in the HOA.

The suspension of trading in COB’s securities has now been lifted with shares up 21% to 17 cents.

Both companies said they were delighted that a commercial outcome had been reached that would allow the development of the project with benefits accruing to shareholders of both companies.

The Broken Hill Cobalt Project, which was formerly known as the Thackaringa Cobalt Project, is west of Broken Hill in the far west of NSW.

Agreement terms

Under the binding HOA BPL will receive:

  • $500,000 cash;
  • 9 million COB fully paid ordinary shares at a deemed issue price of 15 cents per share;
  • $1 million three-year convertible note at interest of 6% per annum payable in arrears, convertible with 20-cent conversion price and with COB having an option for early payout; and
  • $3 million five-year promissory note, interest-free for years 1, 2 and 3, and interest of 6% per annum for years 4 and 5, payable in arrears. This note is to be secured over the title to the tenements.

As per the TJV, BPL retains the existing exploration base and precious metal rights and its existing 2% Net Smelter Royalty (NSR) on all cobalt production from the project.

COB and BPL are working together to complete all necessary documents.

Quick facts: Cobalt Blue Holdings Ltd

Price: 0.09 AUD

ASX:COB
Market: ASX
Market Cap: $14.39 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Cobalt Blue Holdings Ltd named herein, including the promotion by the Company of Cobalt Blue Holdings Ltd in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Cobalt Blue on its vision for the Broken Hill Cobalt Project

Cobalt Blue Holdings Ltd (ASX:COB) CEO Joe Kaderavek talks with Proactive's Benjamin Starr about Cobalt Blue and the Broken Hill Cobalt Project. Kaderavek talks about the strategic direction moving forward with the project as well as the pilot and demonstration plant.  

on 14/2/20

2 min read