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Electra Battery Materials Corp V.ELBM

Alternate Symbol(s):  ELBM

Electra Battery Materials Corporation is a Canada-based processor of low-carbon, ethically sourced battery materials. The Company is focused on building a supply of cobalt, nickel and recycled battery materials. It is engaged in the business of battery materials refining, including refining material from mining operations and from the recycling of battery scrap and end of life batteries. It owns two main assets: the refinery located in Ontario, Canada and the Iron Creek cobalt-copper project located in Idaho, United States. Its projects include Ontario Refinery, Recycling, Becancour, North American Nickel and Iron Creek. It is in the process of constructing its expanded hydrometallurgical cobalt refinery, assessing the various optimizations and modular growth scenarios for a recycled battery material (known as black mass) program, and exploring and developing its mineral properties. The Iron Creek Project consists of mining patents and exploration claims over an area of 3,300 hectares.


TSXV:ELBM - Post by User

Post by rotten2coreon Mar 14, 2018 7:52pm
123 Views
Post# 27717047

Value creation

Value creationThe fact is, with the USCO aquistion, FCC becomes a much more exciting and valuable play. With the historic work that has been done (non 43-101 resource estimate of 1.3MT @.59% CO), combined with the work USCO has done to confirm and expand this estimate, the Iron Creek property is much closer to production than any of FCC other assets. This legitimaizes First Cobalt's statement that they are the premier North American Cobalt exploration company with an eye on the earliest possible production capability to take advantage of the current and near-term Cobalt demand. Strategically, this acquisition makes a lot of sense and should create value for both FCC and USCO shareholders. USCO has about $3M in cash - independently fully funded for their 2018 drilling program. With the success they've had surface drilling, they've recently announced underground drilling is set to begin which is very exciting. FCC adds a near term production asset to their portfolio. Combine that with their refinery and Ontario mine and land assets, as well as their $30M cash position, and they stand alone as the premier North American Cobalt exploration play. I have copied and pasted the synergies the 2 companies will realize (https://www.financialbuzz.com/breaking-news-first-cobalt-announces-friendly-acquisition-of-us-cobalt-1032366) below........ Benefits to First Cobalt Shareholders: - Acquisition of a high quality asset in the Idaho Cobalt Belt with excellent near-term resource potential. - Strengthens and de-risks portfolio of assets with the addition of an advanced exploration project with a historic non-compliant resource estimate. - Opportunity to leverage the First Cobalt refinery through exposure to projects in two jurisdictions. - Aligns with First Cobalt's strategy of growing its presence in North America. Benefits to US Cobalt Shareholders: - Immediate and significant premium of approximately 61.8% based on the prior day closing price, and 58.5% based on the 5-day VWAPs of both companies. - US Cobalt shareholders will maintain a meaningful position in First Cobalt, allowing for upside participation as First Cobalt progresses with exploration and development projects. - US Cobalt shareholders will benefit from the increased size and liquidity of the combined company. - Combined company has significant revaluation potential as a vertically integrated pure-play cobalt company with assets outside the DRC. - US Cobalt exploration team joins a First Cobalt senior management team with significant experience in exploration, development and operations across various jurisdictions with a history of creating shareholder value.
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