Cobalt exploration and development company First Cobalt (TSX.V: FCC) (OTCQB: FTSSF) and US Cobalt (TSX-V: USCO) (OTCQB: USCFF) this morning announced that the two companies have entered into a definitive agreement for First Cobalt to acquire all of the issued and outstanding shares of US Cobalt. Per the terms of the agreement, all of the US Cobalt issued and outstanding common shares will be exchanged at a rate of 1.5 First Cobalt common shares for each US Cobalt common share. In addition, it is expected that all US Cobalt stock options outstanding will be replaced with First Cobalt stock options and be exercisable for First Cobalt shares based on the exchange ratio for the remainder of their original term, and all US Cobalt warrants outstanding will participate in the transaction on a comparable basis to holders of US Cobalt common shares based on the in-the-money portion of those securities. Assuming all US Cobalt options and warrants are exercised prior to completion of the transaction, First Cobalt and US Cobalt shareholders will own approximately 62.5% and 37.5% of the combined company respectively, on a fully-diluted in-the-money basis upon the successful completion of the transaction. The agreement further enhances First Cobalt’s position as a pure-play North American cobalt company. “We foresee a shortage of cobalt over the next five years yet there are few companies doing significant work to identify new sources of supply. This transaction creates a larger platform to discover and develop cobalt projects for the growing electric vehicle market by combining high quality North American assets in two of the best cobalt jurisdictions outside the DRC. US Cobalt’s Idaho project complements our Canadian Cobalt Camp properties, offering upside potential for shareholders of both companies,” First Cobalt president and CEO Trent Mell stated in the news release.
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About First Cobalt Corp.
First Cobalt is the largest land owner in the Cobalt Camp in Ontario, Canada. The Company controls over 10,000 hectares of prospective land and 50 historic mines as well as a mill and the only permitted cobalt refinery in North America capable of producing battery materials. First Cobalt began drilling in the Cobalt Camp in 2017 and seeks to build shareholder value through new discovery and growth opportunities. For more information, visit www.FirstCobalt.com.
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