First Cobalt will issue 25.7 million of its company shares at a price of $C1.10 per share in order to raise $C25 million ($25.56 million), taking advantage of the rising price of cobalt. The shares consist of 4.7 million flow-through units ($C1.51 per unit) for $C7 million ($7.16 million), and 16.4 million company units ($1.10) for $18 million ($18.41 million).
In addition, the company has been granted an option to sell 4.6 million more units for an extra $5 million for a total of $C30 million ($30.7 million).
The ASX-listed company will use the funds for exploration and development of its Canadian mineral properties in Ontario, as well as for general corporate and working capital purposes; recently, the company announced its purchase of four mining claims in Ontario for 224,000 common shares.
First Cobalt is a part of the Cobalt Camp, along with companies Cobalt One and CobalTech, which currently own the only permitted cobalt refinery in North America.