Cobalt Blue Raising A$5M For Australia’s First Cobalt-Nickel Refinery

Cobalt Blue Holdings Ltd (ASX: COB) has secured firm commitments to raise A$5 million via a share placement to domestic and offshore institutional investors.

This capital injection will help the company to move forward with plans to establish Australia’s first cobalt-nickel refinery.

Cobalt Blue will issue the shares at A$0.115 each along with one-for-one free unlisted options exercisable at A$0.20 and expiring three years from the issue date.

Key components in lithium-ion batteries

The proposed refinery in Kwinana, south of Perth, would position the company as a major player in the critical battery metals sector.

The refinery will aim for mid-stream processing of feedstock from mines in Australia and overseas to produce battery-grade cobalt sulphate and nickel.

Cobalt sulphate and nickel are key components in lithium-ion batteries, powering the electric vehicle (EV) and energy storage system (ESS) markets.

Use of funds

The funds raised from the placement will be used for:

  • Refinery development program (completion of pre-construction activities)
    • Technical studies
    • Approvals & permits
    • Feedstock agreements
    • Marketing & offtake agreements
  • Re-Mining
    • Progress Hudbay relationship via advancing studies
    • Assess other re-mining opportunities in Australia, North America and Europe
  • Broken Hill Cobalt Project review

Midstream critical mineral capacity in Australia

Cobalt Blue CEO Joe Kaderavek recently said: “Refinery Project development is progressing well, and we remain on pace to see construction commence by the end of this year.”

Kaderavek added that there is significant interest from WA State and Australian Commonwealth governments, along with international commercial parties in the emergence of a new midstream critical mineral capacity in Australia for the global battery supply chain.

 

 

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