TORONTO, March 30, 2020 /CNW/ - First Cobalt Corp.
(TSX-V:FCC, OTCQX:FTSSF) (the "Company") today announced
it once again produced a battery grade cobalt sulfate using its
refinery flow sheet but this time with a different feed source.
This latest milestone demonstrates versatility of the Company's
permitted Canadian refinery and its ability to become North America's only producer of cobalt
sulfate for the electric vehicle industry.
HIGHLIGHTS
- Second trial produces battery grade cobalt sulfate assaying
21.4% cobalt, surpassing the reference grade for sulfate
pricing
- Over 99.9% purity achieved in batch testing, with ample
opportunity to improve product specifications to meet offtake
partner requirements through process adjustments
- Ability to treat different feedstocks underlines
flowsheet versatility of the permitted hydrometallurgical
facility
- Definitive Feasibility Study in final stages with
completion now anticipated in one month
Trent Mell, First Cobalt
President & CEO, commented:
"This is an excellent result. There were no surprises from
this latest round of metallurgical testing and the few impurities
remaining in the cobalt sulfate product were in line with
expectations given the test process we followed. Once we have
settled on buyers for the product, we are confident that we can
make a sulfate product that will meet the quality requirements of
their batteries.
Economic uncertainty due to COVID-19 is not expected to have
a lasting impact on the Company's strategic plans, as we do not
intend to rely on equity markets to finance our refinery expansion.
The transition from internal combustion engines to EVs will
continue, with cobalt a key ingredient for the batteries we need
for a clean future. First Cobalt's strategy and our partnership
with Glencore will put us at the center of this transition for the
North American and European markets."
SGS Canada was engaged to
assess the suitability of cobalt hydroxide and a cobalt alloy
product as potential feedstock for the First Cobalt
hydrometallurgical facility. Tests simulated existing circuits to
determine the ability to produce a cobalt sulfate heptahydrate, a
critical component of lithium-ion batteries. In 2019, First Cobalt
produced a battery grade cobalt sulfate that assayed 20.8% cobalt
from a cobalt hydroxide feed, surpassing the reference grade for
sulfate pricing. Today's results were derived from the cobalt alloy
and yielded another battery grade cobalt sulfate that assayed 21.4%
cobalt. Both products are also classified as 'high purity',
achieving over 99.9% purity based on measurable impurities.
In August 2019, the Company
entered into a strategic relationship with Glencore AG, which
provided a framework for a fully funded, phased approach to
recommissioning and expanding the refinery. A feasibility study for
the refinery expansion is currently in its final stages and is now
expected to be completed at the end of April. This is one month
later than anticipated due in part to pandemic-related work
slowdowns, which impacted inflow and review of vendor
quotations.
The Company owns the only primary cobalt refinery in
North America. As the majority of
refined cobalt for the electric vehicle market is produced in
Asia, the First Cobalt Refinery
could become a strategic asset for the North American and European
battery markets.
A final decision to put the Refinery back into production is
contingent on the outcome of the feasibility study and the
completion of a long-term feed supply agreement with Glencore.
About First Cobalt
First Cobalt owns North
America's only permitted cobalt refinery. Cobalt refining is
a critical component to the development and manufacturing of
batteries for electric vehicles and forms a foundational piece of
the next generation of the North American auto sector and other
electrified consumer and industrial applications. First Cobalt owns
a cobalt project in the United
States and controls significant mineral assets in the
Canadian Cobalt Camp, including more than 50 past producing
mines.
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.
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.
SOURCE First Cobalt Corp.