Mount Marion is owned by China’s Jiangxi Ganfeng Lithium and Australian companies Mineral Resources and Neometals.
The Canadian company said in an announcement on Monday (January 7) that it will acquire a royalty of 1.5 percent gross revenue and AU$2 per tonne of ore mined from Westgold Resources (ASX:WGX) for AU$250,000 and 200 metric tonnes of physical cobalt metal.
Mount Marion is owned by China’s Jiangxi Ganfeng Lithium (43.1 percent) and Australian companies Mineral Resources (ASX:MIN) (43.1 percent) and Neometals (ASX:NMT) (13.8 percent) — though Neometals has agreed to sell its share to Jiangxi Ganfeng and Mineral Resources.
Mount Marion adds to Cobalt 27’s portfolio of 10 streams and royalties on battery metals, mostly cobalt and nickel. Only one — a cobalt stream on Vale’s (NYSE:VALE) Voisey’s Bay — is currently producing.
“We are committed to becoming a proxy for the large-scale transition to battery-based electric vehicles and energy storage systems,” said Cobalt 27 Chairman and CEO Anthony Milewski, who added that the company is also working on increasing near-term cash flow.
“The producing Mount Marion lithium mine has the world’s second largest high-grade lithium concentrate-spodumene reserves,” he said.
Mount Marion is located near Kalgoorlie in Western Australia, a region with extensive mining infrastructure.
Monday’s news follows a previous new-year deal by Cobalt 27, which last week entered into a friendly takeover for Highlands Pacific (ASX:HIG) and its 8.56-percent share of the nickel and cobalt from the Ramu mine in Papua New Guinea. The arrangement with Highlands Pacific follows a previous May 2018 deal between the two companies that fell through.
On the TSX Venture Exchange, Cobalt 27’s share price was up by 5.26 percent by market close on Monday, with the company’s value reaching C$4.40 per share.
Over 2018, Cobalt 27’s share value fell from a high of C$13.62 in late March to a low on the last day of the year of C$3.28. Since the start of 2019, the company’s shares have increased by over 31 percent.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.