TORONTO, Dec. 16, 2020 /CNW/ - First Cobalt Corp. (TSXV:
FCC) (OTCQX: FTSSF) (the "Company") is pleased to announce that it
has signed contribution agreements and will be the recipient of
$10 million in public funding from
the Government of Canada and the
Government of Ontario. This
critical funding will allow the Company to accelerate the
commissioning and expansion of its Refinery in Northern Ontario, attract new investment, and
execute against its strategic business plan.
Key terms under the agreements with both governments are as
follows:
- Government of Canada:
$5 million interest-free loan,
through the Federal Economic Development Initiative for
Northern Ontario
- Government of Ontario:
$5 million non-repayable grant,
through the Northern Ontario Heritage Fund Corporation
- This combined strategic investment, totaling $10 million, will enable First Cobalt to
recommission and expand its cobalt refinery north of Toronto
- Once complete, the facility will be the first of its kind in
North America, capable of
producing 25,000 tonnes of battery-grade cobalt sulfate annually,
which could represent five percent of the global market for refined
cobalt
All amounts in this news release are in Canadian dollars
unless otherwise indicated.
First Cobalt's refinery project has an estimated capital cost of
$77 million (US$60 million), including Federal and Provincial
contributions totaling $10 million.
This support will help secure well-paying, long-term jobs in
Northern Ontario.
The Refinery adds another significant piece to the automotive
supply chain in Canada, following
recent announcements by both levels of government in support of
battery electric vehicle production.
As global EV sales continue to set new records, First Cobalt
will play a critical role in the growing North American supply
chain. This investment reinforces Canada's position as an automotive powerhouse
as the auto industry positions itself for an electric future.
John Pollesel, Chairman of the
Board of Directors, commented:
"Today's announcement is a transformational investment from
the Federal and Provincial governments and is further validation of
the strategic plan that our management team has been executing for
many months. This funding sends a strong signal to investors that
our plan is credible, achievable, and realistic. Looking ahead, the
enhanced credibility this funding brings will help attract
investment partners to this critical project.
Trent Mell, President & Chief
Executive Officer, commented:
"The electric vehicle revolution is powered by cobalt and we
are thrilled to partner with the Government of Canada and the Government of Ontario to expand and recommission our
Northern Ontario Refinery, bringing long-term employment to the
community.
Global demand for cobalt is increasing as
electric vehicles become more widely adopted. Our refinery
will be the only source of domestic cobalt for the North American
electric vehicle industry and it will also be well positioned to
support the European market.
The cobalt feed material that we will process
will be certified as ethically sourced and conflict-free. Moreover,
our goal is to build the greenest cobalt refinery in the world.
Initial indications are that our refinery will have CO2
emissions that are 50% lower than our benchmark peer – and we will
not stop there."
Project Overview
The First Cobalt Refinery is a hydrometallurgical
cobalt refinery located north of Toronto, in the community of Temiskaming
Shores. The facility was permitted in 1996 with a nominal
throughput of 12 tonnes per day and operated intermittently until
2015, producing cobalt, nickel and silver products. In May 2020, the Company completed an engineering
study that confirmed the Refinery's suitability to treat cobalt
hydroxide at an expanded throughput of 55 tonnes per day to produce
a high purity, battery grade cobalt sulfate. Today, approximately
80% of global supply comes from China and there is no production in
North America.
In conjunction with the feasibility study, discussions have been
ongoing with potential automotive offtake partners as well as
several lenders interested in providing the balance of the capital
required to complete the project.
About First Cobalt
First Cobalt owns North
America's only permitted cobalt refinery. Cobalt refining is
a critical component to the development and manufacturing of
batteries for electric vehicles and forms a foundational piece of
the next generation of the North American auto sector and other
electrified consumer and industrial applications. First Cobalt owns
the Iron Creek cobalt project in Idaho,
USA and controls significant silver and cobalt assets in the
Canadian Cobalt Camp, including more than 50 past producing
mines.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking
Statements
This news release may contain forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects', "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "occur" or "be
achieved". Forward-looking statements involve risks, uncertainties
and other factors that could cause actual results, performance and
opportunities to differ materially from those implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements are set
forth in the management discussion and analysis and other
disclosures of risk factors for First Cobalt, filed on SEDAR at
www.sedar.com. Although First Cobalt believes that the information
and assumptions used in preparing the forward-looking statements
are reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed times frames or at all. Except where required by
applicable law, First Cobalt disclaims any intention or obligation
to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
SOURCE First Cobalt Corp.