Cobalt 27 acquires royalty on RNC's Dumont project
London, 22 February (Argus) — Canadian mining and metals investment company Cobalt 27 Capital has agreed a royalty on Canadian mining company's RNC Minerals Dumont nickel-cobalt project in Quebec, Canada.
Cobalt 27 has agreed a 1.75pc net smelter return (NSR) royalty on the future output of all metals from the Dumont project that is due to start production in 2020.
The Dumont net smelter return royalty (NSR) will be Cobalt 27's first investment under its new wholly-owned subsidiary, Electric Metals Streaming Corp.
The subsidiary will also hold all Cobalt 27's future streaming and royalty investments.
The Dumont project contains one of the largest nickel reserves in the world and one of the largest cobalt reserves outside Africa.
It is a nickel sulphide project and is ideally suited to produce nickel and cobalt feed for electric vehicle and grid storage batteries.
The Dumont project has an initial mine life of 33 years with over 1bn t of reserves. It has the potential for significant expansion with up to an additional 30 years of mine life.
Initial production is expected to be 33,000 t/yr of nickel and 1,000 t/yr of cobalt contained in concentrate. Production is to be expanded in the project's fifth year to average 51,000 t/yr of nickel and 2,000 t/yr of cobalt.
Cobalt 27 said it is focussed on continuing to invest in streaming and royalty agreements and intends to finalise the first of several cobalt streaming agreements over the next year.
The completion of the acquisition of the Dumont NSR is subject to certain customary conditions of closing, including approval of the TSX Venture Exchange.
Cobalt 27 said it is expected to be completed shortly.
Switzerland-based mining and metals investment company Pala previously made a $4mn investment in RNC Minerals to facilitate the continuing ramp up of its Beta Hunt gold mine in Australia.
Last year, Pala raised its stake in Cobalt 27 and invested in Australian mine developer Altura's lithium operation in Pilgangoora, Western Australia.