Australian miner Equator Resources – also known as Colbalt One – is set to merge with Toronto-based First Cobalt.
First Cobalt has signed a letter of intent to acquire 100 per cent of the shares in Cobalt One, which has mines based in Canada.
Both companies will turn into MergerCo, which will subsequently become the largest listed cobalt exploration company.
“This proposal represents an attractive opportunity for Cobalt One to expand and allow shareholders to benefit from being part of a larger company,” said Jason Bontempo,executive director at Cobalt One.
“It is expected to have greater liquidity and access to capital from two of the world’s leading capital markets. Cobalt One shareholders would have a meaningful position in the merged company.”
First Cobalt was considered “the ideal choice” as both companies’ properties were based in the same region where First Cobalt has experience.
Cobalt One chairman Paul Matysek and executive directors including Bontempo and Bob Cross will become part of the company’s board.
”By creating what we believe to be the largest cobalt exploration company in the world, the new company will provide strong leverage to the growth of the electric vehicle market,” said Trent Mell, First Cobalt President and CEO.