First Cobalt (FCC.V) has closed the bought deal financing it announced and upsized before. The company is now raising a total of C$30.6M of which approximately C$7M has been raised in flow-through funds whilst an additional 21M units (rounded) were issued to raise an additional C$23M. The hard dollar financing was priced at C$1.10 per unit (with each unit consisting of 1 common share and half a warrant allowing the warrant holder to purchase an additional share at C$1.50 for a period of two years.
The flow-through financing was conducted at a price of C$1.51 per unit (with each unit consisting of one common share and half a warrant). First Cobalt still had a working capital position of C$2.5M as of at the end of September, but as the company continues to work on its Keeley-Frontier cobalt project in Canada, we would now expect FCC to end the year with a net working capital position of approximately C$28M, making it one of the best capitalized exploration companies looking for cobalt.
Drill results are now rolling in (First Cobalt has now completed a 61 hole, 6,400 meter drill program at the Cobalt Camp) and the company has confirmed its drill bit has intersected three separate veins at the past producing Keeley mine in the Cobalt camp. The veins aren’t wide, but the cobalt grades are pretty interesting. FCC released assay results for hole 5 which consisted of 5.5 meters at 0.12% cobalt followed by 38 centimeters at 0.6% cobalt and 42 centimeters of in excess of 1% cobalt. As a reminder, at the current cobalt price of $74,500/t represents an in-situ rock value of US$74.5/t whilst nickel and copper are expected to slightly increase the rock value.
With almost C$30M in the bank, First Cobalt definitely appears to be fully-funded for a camp-wide exploration and drill program in 2018 as it’s now ready to hit the ground running.