Pursuant to the Arrangement, Cobalt 27 will transfer certain assets to Conic
Cobalt 27 Capital announced that it expects the completion of the previously-announced plan of arrangement under the Business Corporations Act (British Columbia) (“Arrangement”) to occur on October 25, 2019. The Arrangement provides for the acquisition by Pala of 100% of Cobalt 27’s issued and outstanding common shares (other than the approximately 19% that Pala already owned), and the creation of a new company, Nickel 28 Capital Corp., that has been renamed as Conic Metals Corp. (“Conic”).
The Arrangement was approved by Cobalt 27’s shareholders at an annual general and special meeting held on October 11, 2019, and by the Supreme Court of British Columbia on October 16, 2019. Under the terms of the Arrangement, each Cobalt 27 common share will be exchanged for C$4.00 in cash and one common share of Conic.
Conic will be a base metals company with a focus on offering direct exposure to nickel and cobalt, integral elements in key technologies of electric vehicles and energy storage systems. Pursuant to the Arrangement, Cobalt 27 will transfer certain assets to Conic, including the 8.56% joint-venture interest in Ramu, a low-cost, long-life, producing nickel-cobalt mine and integrated refinery; a royalty portfolio on future projects; and certain equity positions including equity in Giga Metals Corporation.
The TSX Venture Exchange (the “TSX-V”) has conditionally approved the listing of the Conic common shares and it is anticipated that the Conic shares will commence trading on the TSX-V in early November under the symbol “NKL” upon final acceptance of Conic’s Form 2B Listing Statement and other related deliverables. Cobalt 27 intends to promptly apply to de-list its common shares from the TSX-V and cease to be a reporting issuer in each of the provinces and territories of Canada.
The Company also confirms that it has been notified by majority-owner and operator Metallurgical Corporation of China Limited (“MCC”), that processing at the Ramu Process Facility has been temporarily suspended to undertake remedial works to protect against potential future incidents similar to the reported occurrence on 24th August 2019. These works include increases in retainment bunds, instrumentation enhancements, improvements to preventative maintenance systems and undertaking increased safety and training measures. MCC is working with the Papua New Guinea government authorities, whose representatives are at site, to ensure process operations can recommence full operation as soon as possible. Furthermore, the Company has been advised by MCC that the Ramu Process Facility has approximately 2 to 3 months of stockpiled inventory on hand and the planned suspension of processing activity is not expected to have a material impact on sales during the period.
Source: Company Press Release