MetalNRG plc (NEX:MNRG), the natural resource investing company quoted on the NEX Exchange Growth Market in London, announce on the 29 June 2017 an agreement to acquire cobalt licences in Western Australia (hereinafter “the “Palomino Cobalt Project” or the “Project”).
Today Share Talk publish an interview that was recorded yesterday evening in the U.K. MetalNRG plc (NEX:MNRG) CEO Paul Johnson talks about the companies NEX Exchange listing, what share holders can expect in the coming months.
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.
MetalNRG plc RNS Highlights 29 June 2017:
- MetalNRG takes first investing step with the creation of the Palomino Cobalt Project in Western Australia;
- The Project consists of licence applications submitted and pending to be submitted applications in respect of ground prospective for cobalt based on historic exploration;
- Total acquisition cost of approximately £55,000 with 83% of acquisition cost payable in MetalNRG new ordinary shares priced at 1.5p per share;
- MetalNRG forms Cobalt Division to act as a repository for this transaction and anticipated additional cobalt interests.
Paul Johnson Chief Executive Officer of MetalNRG, commented: “I am very pleased to announce this first important step by MetalNRG to invest in Australian cobalt exploration.
“Cobalt is a highly significant commodity which has seen its market price increase from circa US$24,000/t a year ago to approaching US$59,000/t of late. The forward supply/demand characteristics and cobalt’s importance in the emerging battery technology sector mean that despite the dramatic increase in price over the last year there is potential for the cobalt price to be maintained, or better still increase further.
In recognition of our excitement and interest in this growing market, we are launching a Cobalt Division. The Cobalt Division will focus on the identification of cobalt deposits in safe jurisdictions around the world, including Australia, the United States and Canada, and we anticipate further cobalt transactions in the near future.
Naturally shareholders and investors should note that until further transactions are crystallised and announced to the market via regulatory release, there can be no certainty that additional commercial deals will be completed.
With regard to this specific transaction, we have chosen to limit the amount of specific information released at this time to enable the Company and vendor working together to submit additional cobalt licence applications in the vicinity. Further detailed transactional information will follow in due course when that process has been completed.
I would like to personally thank our shareholders who have been constantly supportive as we have undertaken an immense amount of background work. We trust that this work will be evidenced clearly in the coming weeks and months as progress announcements are released.”
The Palomino Cobalt Project is an exploration block of circa 40 square kilometres in Western Australia covered by exploration licence applications that we understand have been submitted on a first-in-line basis. The ground is prospective for cobalt and with significant evidence of cobalt mineralisation from surface based exploration work and notably stream sediment sampling.
In addition the Company, with the vendors, will be seeking to secure additional ground in the area of a similar square kilometre footprint with immediate effect to double the area covered by the existing applications.
To secure the right to acquire 100% of the above licence applications, when they become granted licences and subject to the normal regulatory approvals needed for licence transfers, MetalNRG has agreed to cover the direct costs of the vendor up to circa A$15,000 and to issue one million MetalNRG shares to the vendors at a deemed price of 1.5p per new ordinary MetalNRG share.
Upon granting of the applications MetalNRG will issue a further two million shares to the vendors at a deemed price of 1.5p per new MetalNRG ordinary share.
Further detailed project and transactional information will be provided when the additional licence applications over adjacent ground has been secured.
The Directors of the Company accept responsibility for the contents of this announcement.
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