() () (FRA: COH) has received strong validation for its Global Cobalt Samples Partnership Program by raising AU $ 15 million in a private placement from institutional, sophisticated and professional investors.

Firm commitments were received for the two-tranche placement which was well supported by a number of domestic and foreign institutional investors.

Fully funded for the demonstration plant

The proceeds will be used to accelerate the construction of a demonstration plant, which will follow the pilot plant sampling program, which is nearing completion.

The company is now fully funded to complete construction of this larger plant to deliver battery grade cobalt sulfate to end users and potential strategic partners.

These factories are two key components of the company’s sampling program focused on the Broken Hill Cobalt (BHCP) project in the far west of New South Wales.

“Strongly supported”

COB CEO Joe Kaderavek said: “We welcome a number of highly regarded domestic and international institutional investors to the Cobalt Blue ledger as part of a strongly supported fundraiser that will fund the continued development of the Broken Project. Hill Cobalt.

The company plans to complete the entire pilot plant sampling program over the next few weeks and will present a summary of the program once completed, along with the overall specifications for the Global Sample Partner Program.

Transition to a larger factory

This placement will allow COB to move to a larger scale demonstration plant at Broken Hill and advance feasibility studies for BHCP.

The proceeds will also be used to finance geological and site activities, approvals and permits, the acquisition of additional housing, research of partners and financing and working capital.

There will be 50 million new fully paid ordinary shares issued at AU $ 0.30 per share, of which 25 million free attachments may be exercised at $ 0.45 each on or before August 15, 2022, based on an option for two investment shares issued.

Two slices

The placement has two stages:

• In the first tranche, COB will issue 25.9 million new shares and 12.95 million unlisted options, within the framework of its current placement capacity in accordance with ASX 7.1 and 7.1A listing rules, to raise approximately 7, 8 million Australian dollars before fees. Settlement of Tranche 1 is expected to take place on or around June 18, 2021.
• In the second tranche, COB will issue 24.1 million new shares and 12.05 million unlisted options, to raise approximately A $ 7.2 million before fees, subject to shareholder approval at a general meeting of shareholders to be held in early August 2021.

The shares issued in connection with the offering will be fully paid common shares of the Company and will rank pari passu with the shares currently issued.

If all options are ultimately exercised, the company will raise an additional AUD 11.25 million, which will be used for project development and general working capital purposes.

Blue Ocean Equities Pty Ltd and acted as lead managers and associated bookkeepers in the offering.