TORONTO, July 10, 2020 /CNW/ - First Cobalt Corp.
(the "Company") (TSXV: FCC) (OTCQX: FTSSF) is pleased to announce
that it has filed the engineering study relating to the
recommissioning and expansion of the First Cobalt Refinery (the
"Refinery") under the Company's profile on SEDAR at
www.sedar.com and its website at www.firstcobalt.com.
The engineering study was prepared by Ausenco Engineering Canada
under the definitions of an Association for the Advancement of Cost
Engineering (AACE) Class 3 Feasibility Study. The results were
previously disclosed in the Company's press release dated
May 4, 2020. The report includes
additional details related to the underlying assumptions used in
the engineering study.
The report was prepared to summarize the results of an
engineering study prepared at a feasibility level related to the
Refinery. As a result of a review by staff of the Ontario
Securities Commission, the Company confirms that the report does
not constitute a feasibility study within the definition employed
by the Canadian Institute of Mining, Metallurgy and Petroleum
("CIM"), as it relates to a standalone industrial project and does
not concern a mineral project of First Cobalt. As a result,
disclosure standards prescribed by National Instrument 43-101 –
Standards of Disclosure for Mineral Projects ("NI 43-101")
are not applicable to the scientific and technical disclosure in
the report. Any references to scoping study, prefeasibility study
or feasibility study by First Cobalt, in relation to the Refinery,
are not the same as terms defined by the CIM Definition Standards
and used in NI 43-101.
Trent Mell, First Cobalt
President & CEO, commented:
"The global pandemic has drawn
attention to the risk of concentrated supply chains. With most of
the world's refined cobalt produced in China, we are seeing heightened interest in a
refinery that is closer to North American and European EV
markets.
We initiated work programs to
enhance aspects of our operating plan and to prepare amendments to
our operating permits. We have also taken steps to strengthen our
ESG practices by joining the Cobalt Institute. CIBC is now working
with First Cobalt to advance discussions with potential partners
interested in co-funding the capital cost of the refinery with
Glencore. I remain very encouraged with the steady, continued
progress of our team."
The Company commenced a $2.1
million optimization program to build on results of the
engineering study (May 13, 2020 press
release). The scope of work includes additional metallurgical
testing and assessment of alternative approaches to manage effluent
sodium levels to lower capital and operating costs and further
enhance project economics. Results are expected in August.
Corporate Update
The Company has issued 1,144,643 Deferred Share Units (DSUs) to
directors and certain officers as compensation for their services.
In accordance with the Company's 2019 Long-Term Incentive Plan, the
DSUs were priced based on yesterday's closing price of the
Company's common shares on the TSX Venture Exchange. DSUs vest
immediately but may not be exercised until a director ceases to
serve on the Board, thus aligning director interests with
shareholders. The Company has also issued 1,050,000 Restricted
Share Units (RSUs) and incentive grants to employees to purchase an
aggregate of 2.2 million common shares of First Cobalt exercisable
at yesterday's closing price of $0.14
for a period of five years. RSUs will vest in three equal tranches
and will be settled in shares based on yesterday's closing price.
Compensation for senior management was significantly reduced in
2019 due to challenging market conditions and long-term incentive
grants are a key retention and incentive tool for key employees and
remains subject to the approval of the TSX Venture Exchange.
About First Cobalt
First Cobalt owns North
America's only permitted cobalt refinery. Cobalt refining is
a critical component in the manufacturing of batteries for electric
vehicles, consumer electronics and industrial applications. Cobalt
is a critical mineral and forms a foundational piece of the next
generation of the North American auto sector. First Cobalt also
owns an advanced cobalt project in the
United States and controls significant mineral assets in the
Canadian Cobalt Camp.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
Neither the 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,
which relate to the proposed development of the First Cobalt
Refinery. All statements, other than statements of historical
facts, 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. 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.
Appendix 1
Location Map – First Cobalt Refinery
Appendix 2
Site Rendering – Expanded Refinery
Appendix 3
Pictures of the First Cobalt Refinery
Image 1. First Cobalt Refinery in Ontario, Canada
Image 2. Current flow sheet configuration of the First Cobalt
Refinery
SOURCE First Cobalt Corp.