Pala investments to acquire Cobalt 27 for CA$501mn
Toronto’s Cobalt 27 is to be acquired by Pala Investments, in a deal that will also see the creation of a new company, Nickel 28.
Cobalt 27 is a mining company in the area of battery metals, which necessary for the electric vehicle and energy storage markets.
Stephen Gill, Managing Partner of Pala said: "As a long-term investor, this transaction is aligned with our strategy of building sustainable value chains around the raw materials that support a changing economy. We look forward to remaining a supportive shareholder of Nickel 28, as it goes forward with a clean balance sheet to continue building its asset base, in particular, by leveraging its recently acquired exposure to the producing Ramu nickel-cobalt mine."
Australia's Jervois Mining merges with Canadian company M2 Cobalt
Yamana Gold sells Brazilian Chapada Mine to Lundin Mining for $1bn
Canada's Envisioning Labs and Hydrostor Inc among Disrupt Mining 2019 semifinalists
Read the latest issue of Business Chief, Canada edition, here
The deal is worth CA$501mn(US$379.9mn), representing an offer of $5.75 per share, $3.57 of which is cash and $2.18 in shares in the newly formed Nickel 28, which will take over the nickel production side of the business. Pala will acquire 100% of the company.
Anthony Milewski, Chairman and CEO of Cobalt 27, said: "We believe this is a highly compelling offer for Cobalt 27, as the transaction provides shareholders with a large upfront premium. It is also clear that nickel will be an increasingly critical component of the electric battery revolution, and the creation of Nickel 28 provides shareholders with significant incremental value and continued exposure to the strong fundamentals of battery metals."
- BMW provide financial support for Lilac lithium extractionTechnology & AI
- Bradda plans a mining expansion involving Boart LongyearLeadership & Strategy
- Peru minister shoots down Southern Copper’s US$1.4bn mineLeadership & Strategy
- KPMG Provides Mining Industry Demand and Risk InsightsSustainability