TORONTO, July 13, 2021 /CNW/ - First Cobalt Corp.
(TSXV: FCC) (OTCQX: FTSSF) (the "Company") today provided an update
on the expansion and recommissioning of its battery materials
hydrometallurgical refinery north of Toronto. The low carbon footprint facility
remains on schedule for commissioning in the fourth quarter of
2022, at which time it will become the only refiner of
battery-grade cobalt sulfate in North
America and the second largest outside of China.
Highlights
- First Cobalt's project team continues to grow with the addition
of a Health, Safety and Logistics Superintendent and a Health,
Safety, Environment and Training Coordinator
- Recommissioning of plant utilities has been ongoing, including
regulatory inspections and maintenance of electric power supply
systems as well as inspection and maintenance of main water supply
piping and pumping systems
- Geotechnical drilling is underway to gather analytical
information for detailed design of the foundations for the new
solvent extraction building, cobalt sulfate crystallizer building
addition and effluent treatment facility
- Improvements to the refinery access road have been completed to
allow for the heavier traffic of transport trucks
- Received the permit to take water and remaining two permit
amendments (air/noise permit and industrial sewage works permit)
and site closure plan have been submitted to regulators for review,
with initial feedback received
- Project activities continue to be funded from a healthy
$14 million treasury as the debt
financing process progresses through the technical due diligence
phase
- First Cobalt is assessing a longer term strategy to produce
nickel sulfate to attract a precursor manufacturer to a future
"Battery Park" all within the existing refinery footprint
"Being located in Canada's
largest mining and mineral processing corridor has allowed us to
build a strong project team, most of whom are local and will remain
with First Cobalt through commissioning and into operations," said
Vice President, Project Development, Mark
Trevisiol. "We continue to build the refinery expansion
utilizing much of the existing physical asset. The equipment and
processes selected are designed around our feedstock using known
chemical processing methods employed in various other refining
operations around the world."
President & CEO Trent Mell
added: "This is the first major battery-grade cobalt sulfate
refinery to be built outside China
in over 20 years, so this is not only an exciting project for us
but also for the Western battery supply chain. Cobalt prices are up
more than 20% over the past four weeks and we are witnessing
stronger interest in offtake contracts as the battery supply chain
shifts its focus from Europe to
new investments in North
America."
Procurement, detailed engineering and additional metallurgical
testwork are ongoing as site level activities continue to advance.
Boart Longyear is in the midst of a 10-day drilling
program and has completed 4 of 8 boreholes to collect
geotechnical information for design of the foundations for the new
solvent extraction building and the cobalt sulfate crystallizer
(Figure 1).
ABB was onsite to inspect and perform maintenance on the
electric power supply systems (Figure 2). GFL was contracted
to remove chemicals from site that will not be required for restart
of the refinery, such chemicals followed a strict regulated
protocol for handling and disposal offsite.
Soderholm Maritime Services mobilized a 4-person diving crew to
inspect existing lake water intake screening which feeds the main
supply water pumping and piping network to the refinery.
Two additional employees have been hired to join the First
Cobalt owner's team working alongside EPCM contractor Ausenco
Engineering Canada; a Health, Safety and Logistics
Superintendent and a Health, Safety, Environment and Training
Coordinator. Both live in the local community and are expected to
transition to the operations leadership team once the refinery has
been commissioned. Additional team members will be recruited during
the coming months.
The planned US$45 million debt
facility is in the due diligence phase and combined with current
working capital and committed government investments, is expected
to supply the remaining funding required to bring the project to
completion. Until such time, the Company has $14 million in working capital to fund its
activities, in addition to $10
million in government funding commitments.
Preliminary discussions have been held with government officials
on the creation of a Battery Park on site, similar to the
Harjavalta Industrial Park in Finland. To realize on this strategy, First
Cobalt envisions refining nickel and cobalt, in addition to
recycling black mass from spent lithium-ion batteries.
Hydrometallurgical test work conducted by SGS on black mass samples
resulted in high recoveries of both cobalt and nickel. All three
feed types could be refined into battery materials using First
Cobalt's hydrometallurgical process and expertise. An integrated
refining operation will help attract a precursor manufacturer to
establish operations on site. Precursor manufacturing is the
final step in chemical processing prior to the battery being
mechanically fitted within a cathode and anode casing for electric
vehicles. The mutual advantages for an integrated approach include
lower operating costs, lower logistics costs and a smaller
environmental footprint.
Refinery Overview
The First Cobalt Refinery is a hydrometallurgical refinery
located north of Toronto, in the
community of Temiskaming Shores. The facility operated from 1996 to
2015, producing cobalt, nickel, copper and silver products. The
Company is expanding the facility and modifying the flow sheet to
refine third party cobalt hydroxide intermediate product into a
high purity, battery grade cobalt sulfate suitable for the electric
vehicle market. Today, approximately 80% of cobalt sulfate is made
in China and there is no
production in North America. In
December 2020, the Government of
Canada and the Government of
Ontario announced a joint
$10 million investment in the First
Cobalt Refinery to help accelerate commissioning and expansion.
About First Cobalt
First Cobalt's mission is to be the most sustainable producer of
battery materials. In 2022, the Company plans to commission
North America's only cobalt
sulfate refinery, a critical asset in the development and
manufacturing of batteries for electric vehicles. First Cobalt also
owns the Iron Creek cobalt-copper project in Idaho, USA as well as several significant
cobalt and silver properties in the Canadian Cobalt Camp.
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.