Me­tal­sTech cuts cobalt free

The West Australian - - WEST BUSINESS - Stu­art McKin­non

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.

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