First Cobalt Files Second Quarter 2021 Financial Results
Toronto, Ontario – (August 27, 2021) – First Cobalt Corp. (TSX-V: FCC; OTCQX: FTSSF) (the “Company”) today announced the filing of its unaudited financial results for the three and six-month period ended June 30, 2021.
For complete details of the condensed interim consolidated financial statements and the associated management’s discussion and analysis, please refer to the Company’s filing on SEDAR (www.sedar.com) or the Company’s website (www.firstcobalt.com).
The Company remains on schedule to commission its expanded refinery in the fourth quarter 2022, at which time it will become the only refiner of battery-grade cobalt sulfate in North America and the second largest outside of China.
Highlights
- Cash of $11.5 million and working capital of $14.7 million as of June 30, 2021
- Announcement of an approximate US$45 million financing package comprising US$37.5 million of 6.95% senior secured convertible notes due December 1, 2026 and approximately US$7.5 million of a common share equity offering. The financing package is subject to customary closing conditions and is expected to close on September 1, 2021
- Glencore loan converted to common shares of First Cobalt on April 7, 2021
- Acquisition of the West Fork Property in Idaho, United States to the west of the existing Iron Creek cobalt-copper deposit to expand the Company’s land position. An earn-in agreement on the Redcastle property located to the east of Iron Creek was also announced during the quarter.
The Company launched an at-the-market equity program (the “ATM Program”) in February 2021 for the issuance of up to $10 million of common shares from treasury. There were no issuances of shares under the ATM Program during the first quarter of 2021. During the second quarter of 2021, the Company has issued a total of 1,588,500 common shares under the ATM Program at an average price of $0.3436 per share, providing gross proceeds of $529,396. A commission of $16,373 was paid to Cantor Fitzgerald in relation to these distributions.
During July 2021, a further 435,000 common shares were issued under the ATM Program at an average price of $0.3230 per share, providing gross proceeds of $140,505. A commission of $4,215 was paid to Cantor Fitzgerald in relation to these distributions. On August 23, 2021, the Company provided notice to Cantor Fitzgerald of the Company’s intention to terminate the ATM Program effective as of September 2, 2021.
About First Cobalt
First Cobalt’s mission is to be the most sustainable producer of battery materials. The Company owns North America’s only permitted cobalt refinery, a critical asset in the development and manufacturing of batteries for electric vehicles. First Cobalt owns the Iron Creek cobalt-copper project in Idaho, USA as well as several significant cobalt and silver properties in the Canadian Cobalt Camp.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
For more information visit www.firstcobalt.com or contact:
Sabrina Gunness
info@firstcobalt.com
+1.416.900.3891
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are forward-looking statements. Specifically, statements with respect to the completion of the Note Offering and Equity Offering and the timing thereof, the filing of the Prospectus Supplement and the timing thereof, the use of proceeds of the Note Offering and Equity Offering, the development of the Refinery, and other matters ancillary or incidental to the foregoing are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as “plans”, “expects', “estimates”, “intends”, “anticipates”, “believes” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved”. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance and opportunities to differ materially from those implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in the management discussion and analysis and other disclosures of risk factors for First Cobalt, filed on SEDAR at www.sedar.com, and are included in the Base Shelf Prospectus and will be included in the Prospectus Supplement. Although First Cobalt believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, First Cobalt disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.