First Cobalt

Primary ticker: TSXV:FCC, OTCQX:FTSSF
Stage of development: Development, Production
Commodity: Cobalt
Project to promote: First Cobalt Refinery
Project location: Canada
Company presentation: Click here
Company video: Click here

Cash: Nil
Debt: US$5M debt outstanding with Glencore

First Cobalt is a North American cobalt company and owner of the only permitted primary cobalt refinery in North America. The Company is exploring a restart of the First Cobalt Refinery in Ontario, Canada, which could produce over 25,000 tonnes of cobalt sulfate per year from third party feed. First Cobalt’s main cobalt exploration project is the Iron Creek Cobalt Project in Idaho, USA, which has an Inferred and Indicated mineral resource estimate available on the Company’s website. The Company also controls a significant land package in the Canadian Cobalt Camp spanning over 100 km2, which contains more than 50 past producing mines.

Management Profile

Trent Mell, President, CEO & Director

Trent Mell has 20 years of mining & capital markets experience in mine permitting, development and operations. His mining career spans base and precious metals, including Barrick Gold, Sherritt International, North American Palladium and AuRico Gold. His commercial experience includes offtake contracts, M&A & over $2.6 billion in equity and debt financings. In junior mining, he was CEO of Falco Resources, owner of the Canadian Horne 5 Project. As President and Head of Mining of PearTree Securities, Trent led the firm to become the largest provider of flow through capital in Canada, with more than $300 million in capital placed in their first year. Trent holds a B.A., a B.C.L. and LL.B. (McGill University), a LL.M (Osgoode Hall), & an Executive MBA (Kellogg School of Management & Schulich).

What is your rationale for attending 121 Mining Investment?

Raise awareness about the First Cobalt Refinery and plans to recommission the facility in 2020, with first cash flow targeted in Q4.

What recent news would you like to highlight to investors attending?

Strategic partnership with Glencore for a fully-funded, non-dilutive expansion of the First Cobalt Refinery.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Complete refinery expansion feasibility study, trade-off studies and detailed engineering

6 Months:

Commence recommissioning and cobalt sulfate product qualification with 1-2 EV manufacturers

12 Months:

Expansion of the refinery from 12 tpd to 55 tpd

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Macro headwinds are placing pressure on base metals but our partnership with Glencore and guaranteed supply of third feed for the First Cobalt Refinery will provide a steady source of cash flow.

What do you think makes your company such a compelling investment?

First Cobalt offers direct exposure to the EV revolution with first production targeted for Q4 2020. The partnership with Glencore for feed and offtake along with the debt financing framework should provide comfort in the strength of the business plan.

Analyst Insight – provided by Independent Investment Research

First Cobalt is a TSX-listed pure-play cobalt company and owner of the only permitted primary cobalt refinery in North America.

First Cobalt’s assets include almost half of the historic mining properties in the Cobalt Camp in Ontario, Canada. The company controls 50 historic mines over 10,000 hectares, as well as a mill and the only permitted cobalt refinery in North America capable of producing battery materials.

The company is exploring a restart of the First Cobalt Refinery in Ontario, Canada, which could produce 5,000 tonnes of cobalt sulfate or metallic cobalt per year. First Cobalt’s main cobalt project is the Iron Creek Cobalt Project in Idaho, USA, which has Inferred mineral resource estimate.

First Cobalt’s vision for the Cobalt Camp is to revisit historic mines and cobalt-rich mineral occurrences, some of which have not seen meaningful exploration activity in more than 75 years, and evaluate the opportunity to use modern geoscience and bulk mining techniques to revive this historic world-class silver camp by targeting its cobalt potential.

First Cobalt began drilling in the Cobalt Camp in 2017, a region that includes the historically significant Keeley-Frontier mine, the Haileybury mine and the Bellellen mine. The company has consolidated much of the camp with a vision of exploring for bulk cobalt mining opportunities.

The Keeley and Frontier Mines were originally developed and operated as separate mines and eventually integrated in 1961. From 1908 to 1965, the Keeley-Frontier Mine produced a total of over 3.3 million pounds of cobalt at a recovered grade of 0.5% and 19.1 million ounces of silver at a recovered grade of 58 ounces per tonne using these reported production numbers. Most of the production occurred between 1922 and 1931.

First Cobalt recently announced a US$5 million loan facility with Glencore to complete advanced engineering, metallurgical testing, field work and permitting – associated with a recommissioning and expansion of the First Cobalt Refinery. Upon completion of a positive definitive feasibility study (DFS) for a 55 tonnes per day refinery expansion (likely during Q2  2020), Glencore is prepared to advance an additional US$40 million to recommission and expand the refinery.