First Cobalt receives $10 million funding from Cdn gov’t

First Cobalt Corp. [FCC-TSXV; FTSSF-OTRCQX] signed contribution agreements and will receive $10-million in public funding from the government of Canada and the government of Ontario. This critical funding will allow the company to accelerate the commissioning and expansion of its Refinery in Northern Ontario, attract new investment, and execute against its strategic business plan.

Key terms under the agreements with both governments are as follows:

From the Government of Canada, a $5 million interest-free loan, through the Federal Economic Development Initiative for Northern Ontario. From the Government of Ontario, a $5 million non-repayable grant, through the Northern Ontario Heritage Fund Corporation.

This combined strategic investment of $10 million will enable First Cobalt to recommission and expand its cobalt refinery north of Toronto.

Once complete, the facility will be the first of its kind in North America, capable of producing 25,000 tonnes of battery-grade cobalt sulfate annually, which could represent 5% of the global market for refined cobalt.

First Cobalt’s refinery project has an estimated capital cost of $77 million (US$60 million), including Federal and Provincial contributions totaling $10 million. The refinery adds another significant piece to the automotive supply chain in Canada, following recent announcements by both levels of government in support of battery electric vehicle production.

John Pollesel, Chairman, said, ” Today’s announcement is a transformational investment from the Federal and Provincial governments and is further validation of the strategic plan that our management team has been executing for many months. This funding sends a strong signal to investors that our plan is credible, achievable, and realistic. Looking ahead, the enhanced credibility this funding brings will help attract investment partners to this critical project.”

The First Cobalt Refinery is a hydrometallurgical cobalt refinery located north of Toronto, in the community of Temiskaming Shores. The facility was permitted in 1996 with a nominal throughput of 12 tonnes per day and operated intermittently until 2015, producing cobalt, nickel and silver products. In May 2020, the company completed an engineering study that confirmed the Refinery’s suitability to treat cobalt hydroxide at an expanded throughput of 55 tonnes per day to produce a high purity, battery grade cobalt sulfate. Today, approximately 80% of global supply comes from China and there is no production in North America.