US Cobalt Securityholders Overwhelmingly Approve Acquisition by First Cobalt
TORONTO, ON — (May 18 2018) – US Cobalt Inc. (TSX-V: USCO, OTCQB: USCFF) (“US Cobalt”) and First Cobalt Corp. (TSX-V: FCC; ASX: FCC; OTCQX: FTSSF) (“First Cobalt”) are pleased to announce that US Cobalt securityholders have overwhelmingly approved the previously announced acquisition by First Cobalt. US Cobalt shareholders, warrant holders and option holders voted 98.87% in favour of the transaction, with 35.8% of eligible votes cast.
The acquisition of US Cobalt will enhance First Cobalt’s position as a vertically integrated pure-play cobalt company with three significant North American assets: 50 past producing mines in the Canadian Cobalt Camp, the Iron Creek Project in Idaho, USA, and the only permitted cobalt refinery in North America capable of producing battery materials.
The Iron Creek Project has a historic mineral resource estimate (non-compliant with NI 43-101) of 1.3M tons grading 0.59% cobalt. A new resource estimate is anticipated by October, 2018.
US Cobalt CEO Wayne Tisdale commented,
“We thank securityholders for their strong support. This is an excellent outcome that our Board of Directors believes is in the best interests of all stakeholders. Upon completion of this transaction, First Cobalt will be well positioned to become a leading vertically integrated pure-play North American cobalt company and they are fully funded to execute the 2018 budgets for the combined company.”
First Cobalt Chairman Paul Matysek commented,
“On behalf of the Board and management, I look forward to welcoming our new US Cobalt shareholders. Our vision is to create the largest North American pure-play exploration and development company in the world. With this acquisition, we have an opportunity to fast track the Iron Creek Cobalt project into one of the first producing cobalt mines this century. In two short years, through a series of accretive transactions, First Cobalt has become one of the largest land holders in the Canadian Cobalt Camp covering over 50 historic mines with associated muckpiles and acquired sought after mineral processing facilities, including the only permitted facility in North America capable of producing cobalt battery materials. Our team and board are driven every day to make our vision a reality. Watch us!”
Subject to obtaining all required regulatory and government approvals, it is anticipated that the Transaction will be completed on or about May 31, 2018.
About US Cobalt
US Cobalt is focused on the acquisition and development of high grade battery metal deposits in North America. The Iron Creek Cobalt Project, located in the prolific Idaho Cobalt Belt, is the focus of a 40-hole, 35,000 foot (10,700 metre) drill campaign to confirm a 1.3M ton grading 0.59% cobalt historical estimate (non-compliant with NI 43-101) and a Resource Estimate prepared in accordance with NI 43-101 is expected on the project in 2018.
About First Cobalt
First Cobalt aims to create the largest pure-play cobalt exploration and development company in the world. The Company controls more than 10,000 hectares of prospective land covering over 50 historic mines as well as mineral processing facilities in the Cobalt Camp in Ontario, Canada. The First Cobalt Refinery is the only permitted facility in North America capable of producing cobalt battery materials. First Cobalt seeks to build shareholder value through new discovery, mineral processing and growth opportunities, with a focus on North America.
On behalf of First Cobalt Corp.
President & Chief Executive Officer
On behalf of US Cobalt Inc.
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