Cobalt 27 ar­ranges $85-mil­lion bought deal of­fer­ing

Cobalt 27 Cap­i­tal Corp. has ar­ranged an $85-mil­lion bought deal of­fer­ing of 8.1 mil­lion shares at $10.50 per share. It plans to use the pro­ceeds to buy up to 720 met­ric tonnes of phys­i­cal cobalt.

Stockwatch Daily - - FRONT PAGE - Mr. An­thony Milewski re­ports

COBALT 27 Cap­i­tal Corp. has en­tered into an agree­ment with a syn­di­cate of un­der­writ­ers co-led by TD Se­cu­ri­ties Inc. and Sco­tia­bank pur­suant to which Cobalt 27 will is­sue 8.1 mil­lion com­mon shares on a bought deal ba­sis at an is­sue price of $10.50 per com­mon share for to­tal gross pro­ceeds of ap­prox­i­mately $85-mil­lion.

Cobalt 27 has granted the un­der­writ­ers an over­al­lot­ment op­tion, ex­er­cis­able in whole or in part at any time up to 30 days fol­low­ing the clos­ing of the of­fer­ing, to pur­chase up to an ad­di­tional 1,215,000 com­mon shares at the is­sue price.

Cobalt 27 will use the net pro­ceeds from the of­fer­ing to pur­chase up to 720 met­ric tonnes of phys­i­cal cobalt cur­rently un­der op­tion for a to­tal pur­chase price of ap­prox­i­mately $58-mil­lion (U.S.) (ap­prox­i­mately $75-mil­lion), rep­re­sent­ing an av­er­age price of $36.39 (U.S.) per pound of cobalt, a 10-per-cent premium to the cobalt high-grade metal bul­letin ask price of $33 (U.S.) per pound on Dec. 6, 2017. It is man­age­ment’s strong be­lief that this ac­qui­si­tion of ad­di­tional phys­i­cal cobalt will fur­ther strengthen Cobalt 27’s bal­ance sheet in ad­vance of po­ten­tial streaming in­vest­ment op­por­tu­ni­ties in 2018. In ad­di­tion, man­age­ment be­lieves the strength­ened bal­ance sheet, size and liq­uid­ity will re­duce Cobalt 27’s cost of cap­i­tal as it tran­si­tions to cap­i­tal­ize on streaming in­vest­ment op­por­tu­ni­ties in 2018.

The com­mon shares will be is­sued pur­suant to a prospec­tus sup­ple­ment that will be filed with se­cu­ri­ties reg­u­la­tory author­i­ties in all prov­inces and ter­ri­to­ries of Canada (ex­clud­ing Que­bec) un­der the com­pany’s base-shelf prospec­tus dated Oct. 17, 2017, and may also be of­fered by way of pri­vate place­ment into the United States pur­suant to Rule 144A. Clos­ing of the of­fer­ing is sub­ject to cus­tom­ary reg­u­la­tory and stock ex­change ap­provals and is an­tic­i­pated to oc­cur on or about Dec. 19, 2017.

About Cobalt 27 Cap­i­tal Corp.

Cobalt 27 Cap­i­tal is a min­er­als com­pany that of­fers pure play ex­po­sure to cobalt, an in­te­gral el­e­ment in key tech­nolo­gies of the elec­tric ve­hi­cle and bat­tery en­ergy stor­age mar­kets. The com­pany owns over 2.16 mil­lion tonnes of phys­i­cal cobalt and man­ages a port­fo­lio of seven cobalt roy­al­ties. The com­pany in­tends to con­tinue in­vest­ing in a cobalt-fo­cused port­fo­lio of streams, roy­al­ties and di­rect in­ter­ests in min­eral prop­er­ties con­tain­ing cobalt, while po­ten­tially adding to its cobalt phys­i­cal hold­ings when op­por­tu­ni­ties arise.

We seek Safe Har­bor.

(KBLT) Shares: 24,816,965

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