logo-loader
viewCobalt Blue Holdings Ltd

Cobalt Blue Holdings secures 100% ownership of Broken Hill Cobalt Project

The company has executed the final agreement for the assignment of Broken Hill Prospecting’s interests.

Cobalt Blue Holdings Ltd - Cobalt Blue Holdings secures 100% ownership of Broken Hill Cobalt Project
The project is near the traditional mining centre of Broken Hill

Cobalt Blue Holdings Ltd (ASX:COB) has secured 100% ownership of the Broken Hill Cobalt Project after executing final agreements to acquire Broken Hill Prospecting Ltd’s (ASX:BPL) interests.

COB and wholly-owned subsidiary, Broken Hill Cobalt Project Pty Ltd (BHCP) last week executed the final agreements for the assignment of BPL’s interests, including legal title.

Relevant title transfer application documents for the project, formerly called the Thackaringa Cobalt Project, have also been lodged with the NSW Department of Planning & Environment.

Consideration

COB will pay BPL $500,000 cash, of which $200,000 was paid last Friday, with the balance expected to be paid on or about February 28, 2020.

The transaction also involves the issue of 9 million COB shares to BPL and these are expected to be issued on settlement on or about February 5.

Other consideration is:

  • A $1 million three-year Convertible Note, with interest of 6% per annum payable annually in arrears. BPL is able to convert the note to COB fully paid ordinary shares at maturity or on January 18, 2021, or January 17, 2022. The note is convertible with a 20-cent conversion price. BHCP has the ability to redeem the note early, without penalty.
  • A $3 million five-year Promissory Note from BHCP, interest-free for years 1, 2 and 3, and interest of 6% per annum payable in arrears. This note is secured over the title to the tenements and can be repaid at any time in whole or in part, without penalty. Once the note is repaid in full, the security over the tenements is extinguished.

BHCP’s obligations in the final agreements have been guaranteed by COB.

BPL’s ownership and legal title of the Broken Hill Cobalt Project will be transferred to BHCP and BPL will retain a Net Smelter Return royalty of 2% on all cobalt production from the project.

COB’s shares have increased from 14 cents a week ago to 17 cents mid-afternoon yesterday and last traded at 16.5 cents.

Quick facts: Cobalt Blue Holdings Ltd

Price: 0.13 AUD

ASX:COB
Market: ASX
Market Cap: $19.49 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.  

4 days, 13 hours ago

2 min read