Cobalt -COB-ARL- HUGE demand 2020+

[JBmurc]

Cobalt Blue Holdings Ltd (NASDAQ:COB) (spun out from Broken Hill Prospecting (NYSE:BPL)) - Price at IPO = AUD 0.20
Cobalt Blue is not yet trading, but should IPO soon with 50m shares at AUD 0.20, raising AUD 10m. The 100% owned Thackaringa cobalt-pyrite project has an inferred resource of 35.7 million tonnes grading 0.084% cobalt (for 30,000 tonnes of contained cobalt). The resource is a shallow deposit continuing at depth, suitable for an open cut mine. The company refers to it as "one of the world's largest undeveloped cobalt resources."

BPL shareholders will receive in-specie distribution of BPL's Cobalt Blue shares (each 4.1682 BPL shares held at the record date receive one COB Share), including loyalty options and priority entitlement in an IPO. Cobalt Blue will buy into the Thackaringa project on a performance based structure. If the maximum of $10 million is raised, the undiluted market capitalisation of Cobalt Blue will be AU$19 million post offer.

Cobalt Blue is targeting a resource of 100 million tonnes at 0.084% cobalt for 84,000 tonnes of contained cobalt. That will support a 20 year operation at 4,000 tonnes pa, and make Cobalt Blue a top five global producer. Definitely one to watch closely......

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[JBmurc]

by Angela Macdonald-Smith
A world away from the scandal-hit mining industry of the Democratic Republic of Congo stands the Thackaringa project in NSW's mining heartland of Broken Hill, said to host one of the world's largest undeveloped cobalt reserves.

The directors of project developer Cobalt Blue Holdings are positioning their new mining play as an answer to the "conflict metals" problem plaguing the DRC's mining industry which is causing tech giants such as Apple and Samsung Electronics to seek out alternative supplies of a raw material that is essential for smartphones and batteries.

It is not just the damning reports about child labour and unsafe conditions in the cobalt mines of the DRC, supplier of about 60 per cent of global cobalt demand, that are playing in favour of Australia's new breed of aspiring players.

"The larger companies will look to ethically source their cobalt," says Joe Kaderavek, chief executive of Cobalt Blue and a former Deutsche Bank head of resources.


"We could well find the supply/demand tensions could get worse," he said of the market already growing at about 8 per cent a year.


In a sector where 98 per cent of cobalt is co-produced with nickel and copper, Cobalt Blue counts itself among the rare breed of pure-play companies, which are potentially attractive for investors looking to tap into the hot commodities with leverage to the expected boom in electric vehicles. Cobalt is an essential ingredient of lithium-ion batteries and of superalloys that are increasingly used in aircraft.

Early stage
A spin-off from Broken Hill Prospecting that is understood to have raised its IPO maximum of $10 million, Cobalt Blue is due to start trading on the ASX on January 31 following a delay after the ASX demanded an upgraded resource assessment. That has been provided in a replacement prospectus lodged with the Australian Securities and Investments Commission. The shares were sold at 20¢ apiece.

The Thackaringa project hosts an inferred resource of 33.1 million tonnes at 833 parts per million of cobalt, and an exploration target of 40 million-66 million tonnes at 600-900 ppm. Its location on the outskirts of Broken Hill ensures access to skilled mine workers, electricity and water supplies and close access to a railway that would take product 400km to Port Pirie in South Australia for eventual export.


The venture is, however, at an early stage, with management aiming to have a bankable feasibility study for the project and all approvals in place by July 2019. Two years of engineering, development and construction would follow.

Chairman Rob Biancardi has carefully been forging relations with potential end customers, including Tesla, which hosted the launch of Cobalt Blue's IPO at its sleek showroom in Sydney's Martin Place.

The IPO also has received an unusual endorsement from NSW mining minister Anthony Roberts and has been strongly endorsed by local government and the state opposition, noted Mr Biancardi, who has held senior roles at IBM, Citibank and Westpac and has board experience in the healthcare and services sector.

Just under 10 per cent of Cobalt Blue will be owned by Geoff Hill, who owns 35 per cent of Broken Hill Prospecting, while the offer has also attracted plenty of retail interest as well as from social and ethical investment funds, Mr Biancardi said.

Read more: http://www.afr.com/business/mining/....#ixzz4Uf1L0jd1

[Fisherking]

I took a read of the prospectus which looks impressive however can't see a simple way to purchase these from NZ. Is it possible to purchase pre-listing?

[Aotea]

hi,
just curious, is this project the original spinoff from heritage gold?

[JBmurc]

not sure I'm just going to wait to it's trading in a few more weeks ...

disc -aotea when you dropping in to pisa ?

[Aotea]

not sure I'm just going to wait to it's trading in a few more weeks ...

disc -aotea when you dropping in to pisa ?

am planning on passing by around 5am soon on way to coast, and/or got a trip to nevis valley preparing drilling pads..either way could be early an in the near future.if you see my mining partner aaron matheson at 37missy do say gidday and introduce yourself. the wild turkey101 is here with your name on it mate...

[JBmurc]

am planning on passing by around 5am soon on way to coast, and/or got a trip to nevis valley preparing drilling pads..either way could be early an in the near future.if you see my mining partner aaron matheson at 37missy do say gidday and introduce yourself. the wild turkey101 is here with your name on it mate...

very good am heading away on friday for some time catching Crayfish ...you have my address can always leave it in the mailbox ...

[JBmurc]

Cobalt Blue (COB) Update – Listing 31/1/17
COB is scheduled to list on 31 January, following a successful $10m IPO. This promises to be a good vehicle for cobalt exposure with the consensus being that cobalt will be one of the more exciting commodities to play in 2017, due to shortages of the metals and potential conflict in the DRC, which contributes 50% of the world supply.

There are a number of cobalt plays coming to surface on the ASX, but very few have JORC resources. Most of them only have sniffs, and sometimes good samples from selective rock chips. There is even one out there that is being promoted on the back of good drill intercepts, but the cobalt grades actually came from the blade used to cut the core, not from the geology. You’d be excused for calling it a fraud.

COB stands out because it does have a JORC resource of 35 Mt, in the safe jurisdiction of NSW (near Broken Hill).

Like virtually all cobalt projects, the cobalt is found with other elements so that the economics depends on not just cobalt alone. Here it is found in association with pyrite, so the co-product is sulphur or sulphuric acid. COB’s earn-in deal commits it to spending real money expanding the resource and completing economic studies. Thus it plans to deliver and not just promote. It will be one of the more tangible cobalt specialist.

http://www.weare121.com/blog/a-clear...acity-battery/

[Joshuatree]

Thanks JB; did you get any in the IPO?.Will watch.Am in another cobalt play but unable to share atp. But its a high risk sniffer for sure.

[JBmurc]

No been far to busy of late ,,,,but I do have a few extra funds to invest ....will see how it opens and runs ...may take a small spec purchase or not .....confident in my current holdings so might well add a few more