The West Australian
MetalsTech cuts cobalt free
Canada-focused lithium play MetalsTech is expected to announce today details of the spin-out of its cobalt assets as it looks to cash in on a surging price for the battery commodity.
It is understood the Subiaco-headquartered company will today advise that its iCobalt subsidiary will be moved into a separate listed entity via a $4.5 million initial public offering.
The new entity is expected to house the Bay Lake cobalt project in Ontario as well as an option to acquire the historic Rusty Lake cobalt-silver mine, also in Ontario.
Drilling at the Bay Lake project has historically returned grades as high as 15.36 per cent cobalt while Rusty Lake has exhibited grades of up to 11.85 per cent cobalt, 8.64 per cent nickel and higher than 10,000g/t silver.
The price of cobalt has more than doubled in the past year to be trading above $US75,000/t. It is a key ingredient in the lithium-ion batteries that are set to power the global electric vehicle revolution.
MetalsTech is focused on the development of its flagship Cancet lithium project in Quebec and expects to begin a maiden drilling program at its Adina lithium project, also in Quebec, next month.
Existing MetalsTech shareholders who hold a minimum 20,000 shares will receive one new share in iCobalt for every five shares they hold.
They will also be able to subscribe for a guaranteed minimum 10,000 new shares in iCobalt at 20¢ a share as well as scope to subscribe for additional shares up to a maximum 250,000 units or $50,000 worth.
MetalsTech has not yet announced the record date for the entitlement but it is not expected to be before January 5.
iCobalt will be headed by former Avonlea Minerals (now AVZ Minerals) managing director David Riekie, who has also held the position of general manager — corporate at Battery Minerals.
Existing MetalsTech board members Russell Moran and Gino D’Anna will be non-executive directors of iCobalt with geologist Qingtao Zeng also joining the board of the new entity.
MetalsTech will be issued 15 million shares and 10 million performance rights in iCobalt.
The plan will be subject to shareholder approval.
Alto Capital is understood to have been appointed lead manager to the spin-out which is expected to trade under the code 1CO.
MetalsTech shares last traded on Friday for 24¢, after hitting a year-high of 40¢ early last month following the company’s ASX listing in February.