NEX Exchange listed MetalNRG (MNRG) has acquired 18.18% of US Cobalt and an option to purchase the rest. The main interest is the Columbia Pass high grade cobalt exploration and development project in Nevada, USA.
The initial stake will cost $200,000 (£118,000) and the option cost $50,000 (£30,000) in shares at 1.5p each. If it takes up the option, MetalNRG will pay £724,000 in shares at 1.5p a share. The vendors will also receive 40 million warrants exercisable at prices up to 10p a share. MetalNRG has also set up an Australian cobalt subsidiary. MetalNRG chief executive Paul Johnson has bought 300,000 shares at 1.5p each, taking his family’s stake to 11%.
Listen to Share Talk’s recent interview with Metal NRG CEO Paul Johnson below: Original link paul-johnson-ceo-interview
WHAT IS COBALT?
Cobalt is a transition metal found between iron and nickel on the periodic table. It has a high melting point (1493°C) and retains its strength to a high temperature.
Similar to iron or nickel, cobalt is ferromagnetic. It can retain its magnetic properties to 1100°C, a higher temperature than any other material. Ferromagnetism is the strongest type of magneticism: it’s the only one that typically creates forces strong enough to be felt, and is responsible for the magnets encountered in everyday life.
These unique properties make the metal perfect for two specialized high-tech purposes: superalloys and battery cathodes.
High-performance alloys drive 18% of cobalt demand. The metal’s ability to withstand intense temperatures and conditions makes it perfect for use in:
- Turbine blades
- Jet engines
- Gas turbines
- Permanent magnets
Batteries drives 49% of demand – and most of this comes from cobalt’s usage in lithium-ion battery cathodes
The three most powerful cathode formulations for li-ion batteries all need cobalt. As a result, the metal is indispensable in many of today’s battery-powered devices.
- Mobile phones (LCO)
- Tesla Model S (NCA)
- Tesla Powerwall (NMC)
- Chevy Volt (NMC/LMO)
The Tesla Powerwall 2 uses approximately 7kg, and a Tesla Model S (90 kWh) uses approximately 22.5kg of the energy metal.
Where will tomorrow’s supply come from, and will the role of the DRC eventually diminish? Will Tesla achieve its goal of a North American supply chain for its key metal inputs?
Mining exploration companies are already looking to regions like Ontario, Idaho, British Columbia, and the Northwest Territories to find tomorrow’s deposits:
Ontario: Ontario is one of the only places in the world where cobalt-primary mines that have existed. This camp is nearby the aptly named town of Cobalt, Ontario, which is located halfway between Sudbury – the world’s “Nickel Capital”, and Val-d’Or, one of the most famous gold camps in the world.
Idaho: Idaho is known as the “Gem State” while also being known for its silver camps in Couer D’Alene – but it has also been a cobalt producer in the past.
BC: The mountains of British Columbia are known for their rich gold, silver, copper, zinc, and met coal deposits. But cobalt often occurs with copper, and some mines in BC have produced cobalt in the past.
Northwest Territories: Cobalt can also be found up north, as the NWT becomes a more interesting mineral destination for companies. 160km from Yellowknife is a gold-cobalt-bismuth-copper deposit being developed.
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