"We anticipated strong support thanks to the strength of our cobalt assets and management at a time when demand and pricing is strong," said Cobalt Blue's Chairman Robert Biancardi. Reflecting increasing market tightness, as demand for alloys and Li ion batteries increase, cobalt spot pricing on the London Metal Exchange has risen by more than 60% in the last 12 months to hit a new five-year high this week of US$36,000/tonne.
The world class Thackaringa cobalt project (located near Broken Hill, NSW) is subject to a Joint Venture Agreement between COB and Broken Hill Prospecting Ltd, "BPL". A significant exploration drilling program started last quarter and, in parallel, historic drilling results have recently been upgraded to the required JORC 2012 standard.
The company will issue 50 million new 20c shares (plus one free loyalty option for every four shares issued) and distribute 35 million (in specie) shares (plus one free loyalty option for every four shares issued) to BPL shareholders. The raising also included a priority offer to shareholders of BPL.
About Broken Hill Prospecting Ltd
Broken Hill Prospecting Ltd (ASX:BPL) is an Australian exploration company focussed on the discovery and development of strategic mineral resources across two primary geographical areas; the Murray Basin Region (Heavy Mineral Sands) and the Broken Hill Region (industrial, base and precious metals, including the Thackaringa Cobalt & Base/Precious Metal Project).
Broken Hill Prospecting Ltd