Cobalt 27 Capital Corp. (“Cobalt 27” or the “Company”) is a minerals company that offers pure-play exposure to cobalt, an integral element in key technologies of the electric vehicle and battery energy storage markets. The Company intends to acquire and hold physical cobalt, as well as manage and grow a cobalt-focused portfolio of streams, royalties and direct interests in mineral properties containing cobalt.
Cobalt is a fundamental component of battery technologies used in electric vehicles and energy storage. Investor demand for battery materials - such as lithium and cobalt– has grown significantly over the past few years. The Company believes that lithium supply could expand rapidly to meet demand as existing producers have significant undeveloped resources and there is a large pipeline of projects attempting to enter into production, whereas there are few cobalt projects in the pipeline. Only 1% of mined cobalt comes from primary cobalt mines, with the rest produced as a by-product of copper and nickel mining making cobalt supply highly dependent upon new copper or nickel projects. As a result, even significant increases in cobalt demand would likely preclude any material increase in production in the current environment as new copper and nickel supply has been challenged.
Cobalt 27 will initially hold physical cobalt material and several exploration-stage cobalt royalties. The Company is also in discussions with cobalt producers and developers for potential cobalt stream acquisitions. The Company’s objective is to achieve appreciation in the value of its physical cobalt position and grow its cobalt exposure through the acquisition of additional physical cobalt, streams, royalties and direct interests in mineral properties containing cobalt. Cobalt 27 offers the investment community a pure-play cobalt vehicle with cobalt price and exploration optionality, while limiting risk exposure.
The Company has assembled a high-quality management team and board of directors comprised of experienced investors and executives in the finance and mining sectors. They have diverse backgrounds in streaming companies, capital raising, cobalt trading and investment marketing. Acquisition opportunities will be sought or derived from a number of sources, including, but not limited to, management’s contacts in the commodities trading and the resources industries. Cobalt 27 will be further supported by its advisory board comprised of experts in their respective fields of mining, investment management and streaming/royalty companies.
Cobalt 27 expects to benefit from cobalt price appreciation, as well as growth opportunities from cobalt streams, royalties and interests in mineral properties containing cobalt.