Glencore And First Cobalt Plan Refinery Restart
Glencore and First Cobalt completed a term sheet on the steps to recommission a cobalt refinery in Ontario.
Terms of the deal were announced on Tuesday. Glencore will loan First Cobalt $5 million for engineering work and delivery of a feasibility study. By 2020, the companies foresee a feed rate of 12 tonnes per day and ramping up to 55 tpd the subsequent year.
Glencore's total capital investment will be $45 million to be repaid by First Cobalts refining agreement.
"Transitioning to cash flow as a North American refiner is our primary focus and todayâ€™s news demonstrates that we are moving closer to achieving that objective. Glencore has been supportive throughout the process and we look forward to working closely with their technical team on a successful execution," said Trent Mell, First Cobalt Chief Executive Officer in a statement.
"An operating refinery in North America can benefit all North American cobalt projects, as it significantly reduces the capital cost of putting a new mine into production."