The Ramu nickel-cobalt mine in Papua New Guinea. (Image: Cobalt 27)
TORONTO – Cobalt 27 Capital Corp. has reached an agreement with Swiss-based Pala Investments whereby Pala will acquire 100% of Cobalt 27’s common shares. Cobalt 27 shareholders will receive $5.75 per share – $3.57 in cash and $2.28 in shares of a new company to be called Nickel 28 Capital Corp.
The deal is valued at $501 million on a 100% basis. Pala already owns 19% of Cobalt 27.
Nickel 28 will hold Cobalt 27’s 8.56% interest in the producing Ramu nickel-cobalt mine in Papua New Guinea. The mine is a joint venture of Cobalt 27 and Metallurgical Corp. of China (operator). The new company will also hold Cobalt 27’s royalty on future projects (Tournagain and Dumont in Canada) and certain equity positions including in Giga Metals Corp.
The arrangement is subject to the approval by both company’s shareholders, the courts, regulatory bodies, and the TSX-V. Visit www.Cobalt27.com.