Increasing Reliance on Lithium-ion Batteries for EVs is set to Grow the Cobalt Market
NEW YORK, October 25, 2018 /PRNewswire/ --
According to a report released by Stratistics MRC, the global cobalt market is expected to grow at a compound annual growth rate (CAGR) of 10.3% between 2017 and 2026. Cobalt is widely used in nickel-metal hydride batteries and lithium-ion batteries. Cobalt helps make these rechargeable batteries more efficient and stable by tackling problems such as reduced life cycle, corrosion, and battery explosions. Increasing demand for lithium-ion batteries used in cell phones, laptops and electric cars, as well as growing demand for cobalt alloys in airplane engines, are some of the key factors that drive the growth of cobalt market. Declan Cobalt Inc. (OTC: DCNNF), Lundin Mining Corp. (OTC: LUNMF), First Cobalt Corp. (OTC: FTSSF), Royal Nickel Corporation (OTC: RNKLF), Trilogy Metals Inc. (NYSE: TMQ)
Tightened regulations on the emission of vehicles have driven the growth of EVs. According to a report from International Energy Agency, the number of electric cars is projected to reach 125 Million units by 2030, based on current and planned policies. In 2017, the number of electric and plug-in hybrid cars on the roads increased 54% to exceed 3 Million around the globe. By region, China is the largest market for electric cars. The number of electric cars sold in China increased 72% to nearly 580,000 in 2017. The United States is the second largest market, with about 280,000 cars sold in 2017.
Declan Cobalt Inc. (OTC: DCNNF) is also listed on the Canadian Securities Exchange under the ticker (CSE: LAN). Just earlier today the company announced breaking news that, "it has completed the acquisitions of both Tisova Pty Ltd. ("Tisova") and TGER Pty Ltd. ("TGER"), owners of certain mineral concessions located in the Czech Republic and Germany (the "Properties").
The Properties are comprised of two concessions and four concessions application parcels comprising 15,929 ha in both Germany and the Czech Republic. The concessions are less than 150km from several electric vehicle battery plants, including BMW's principal supplier's planned factory at Erfurt. Declan is currently conducting a comprehensive program of geological mapping, deep geophysical surveying, and 3D modeling with a view to identifying drill targets and commencing drilling as soon as feasible. Further details of the program results will be released upon receipt, expected prior to the end of October.
The 2018 Tisova exploration program has been designed and supervised by Paul McGuigan, P. Geo., of Cambria Geosciences Inc. and includes:
- the completion of a deep, 3D Induced Polarization survey over the entire Tisova
concession by Dias Geophysical of Toronto;
- the assembly of all historic mine drawings and diamond drilling data into a common 3D
georeferenced database;
- a planned detailed ground magnetic survey with detailed GPS locations to integrate
with the IP and also provide an accurate digital elevation model for 3D modeling and
drill targeting;
- re-interpretation of structural data from an extensive, multi-year underground mapping
project conducted by Charles University, Prague wherein Levels 2 through 6 were mapped
prior to the Tisova mine closure in 1994; and
- new geological and structural mapping to compliment and verify the historic data and
provide the geological controls and 3D modeling for drill targeting.
Preliminary results point to a successful return of electrical responses from the deepest levels of the Tisova mine at depths greater than 600m below surface. Detailed 3D inversions of the IP data are underway and will incorporate the detailed magnetic data, when obtained in early November.
Otto Janout, an experienced Czech-Canadian explorationist, has expedited all Czech logistics and has also acted as the project community liaison, ensuring ongoing local support of Declan's initiatives.
Mining at Tisova was first recorded in the 13th century and, by the 16th century, there were over 2,000 workers at three underground mines producing 5 per cent copper. Production was smelted locally in several parts of the Tisova valley. A local industry of copper and brass fabrication was also spawned by the Tisova mining activity. Modern style mining commenced in 1899 (with the founding of the Klingenthal-Graslitzer Copper Mining Company). After the First World War, the Graslitz region ceded to the newly founded Czechoslovakia. The buildings and treatment plants of the Klingenthal-Graslitzer
Copper Mining Company were demolished between 1923 and 1929. Additional modern mining has taken places over the subsequent decades.
Wayne Tisdale, President of Declan, notes: "This is a rare and exceptional opportunity for Declan to explore in a jurisdiction with a rich mining history. The extent of local mining knowledge is deeply impressive and gives us a chance to commence this project with significant data in hand."
All geological compilations will be made available on Declan's website at http://www.declancobalt.com.
In exchange for 100% of the common shares of Tisova and TGER, as previously disclosed in its press release of July 6, 2018, Declan has:
- paid an aggregate of $60,000 in cash to the shareholders (the "Vendors");
- incurred not less than $500,000 in exploration expenses prior to October 31, 2018;
- issued an aggregate of 1.5 million common shares of Declan ("Declan Shares") to the
Vendors on the closing date at a deemed price of $0.30 per share;
- agreed to incur a minimum of $1 million on the Properties by July 1, 2019 as well as
the issuance of an aggregate 2.5 million Declan Shares to the Vendors at such time;
and
- agreed to incur an additional $1 million on the Properties each year for the next
three years and not later than July 1, 2022 and issue an additional 4 million Declan
Shares to the Vendors.
The Company has also paid a finder's fee by way of the issuance of 46,875 Declan Shares at a deemed price of $0.30 per share. The finder may receive additional Declan Shares (not to exceed and aggregate of 250,000 shares) should Declan choose to proceed with additional exploration to the period ending July 1, 2022.
In connection with this transaction, 100,000 stock options have been granted to the Company's Australian resident appointed director for both TGER and Tisova. The stock options are exercisable at $0.30 for a period of five years and vest in equal tranches over four years.
The securities issued in connection with the acquisitions are subject to a hold period and may not be traded until February 24, 2019.
Mr. Garry Clark, P. Geo., Director of Declan and principal of Clark Exploration Consulting, is the "Qualified Person" as defined in NI 43-101, who has reviewed and approved the technical content in this press release."
Lundin Mining Corp. (OTC: LUNMF) is a diversified Canadian base metals mining company with operations in Chile, the United States of America, Portugal and Sweden, primarily producing copper, nickel and zinc. Additionally, Lundin Mining holds an indirect 24% equity stake in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland. Lundin Mining Corporation recently announced that it has issued a notice to redeem all of its 7.875% Senior Secured Notes due 2022, on November 21st, 2018. There is USD 439.2 Million principal amount of the Notes currently outstanding. Additionally, the Company announced that it has executed an amending agreement to its revolving credit facility that increases the facility to USD 550 Million with a USD 50 Million accordion option, reduces the costs of borrowing and extends the term to October 2022, from June 2020. Ms. Jinhee Magie, Senior Vice President and Chief Financial Officer, commented, "We are grateful for the ongoing support of our lenders and ability to increase and extend this low-cost facility. Combined with the early redemption of our 7.875% Notes, we have been able to significantly reduce our borrowing costs while maintaining substantive financial liquidity and flexibility."
First Cobalt Corp. (OTCQX: FTSSF) is a North American pure-play cobalt company whose flagship asset is the Iron Creek Cobalt Project in Idaho, USA, which has Inferred mineral resources of 26.9 Million tons grading 0.11% cobalt equivalent. First Cobalt Corp. recently reported new drill results from its Iron Creek Cobalt Project in Idaho, USA. The results demonstrate thicker cobalt mineralized zones as well as mineralization between the two recognized zones. All drill holes reported contain mineralization over long widths and grades above the Inferred Resource average grade, including: 25.7m of 0.35% Co and 0.62 Cu (0.42% CoEq) in hole ICS18-03; 22.6m of 0.34% Co and 0.59% Cu (0.40%CoEq) in hole IC18-29; 27.8m of 0.27% Co and 1.09% Cu (0.38% CoEq) in hole ICS18-02. Higher grade mineralization occurs within the broader zones of mineralization, including 8.0m of 0.45% Co and 2.07% Cu (0.65%CoEq) in hole ICS18-02. Trent Mell, President & Chief Executive Officer, commented: "Today's drill results from our flagship asset support the development vision for the future of the Iron Creek Project. We now have three drill rigs on site for infill and extensional drilling as we work towards updating the mineral resource estimate in early 2019."
Royal Nickel Corporation (OTCQX: RNKLF) is a multi-asset mineral resource company with a portfolio of nickel, cobalt, and gold production and exploration properties. RNC Minerals, in its capacity as Manager of the Dumont Joint Venture with Arpent Inc., a subsidiary of Waterton Precious Metals Fund II Cayman, LP and Waterton Mining Parallel Fund Offshore Master, LP, recently announced that Ausenco Engineering Canada Inc. has been awarded the contract for a feasibility study update for the Dumont Nickel-Cobalt Project. Ausenco has led all of the earlier pre-feasibility and feasibility studies completed on the project. Ausenco, in conjunction with Duro Fulguera, also completed additional engineering work in 2015 to develop an EPC Lump Sum Turnkey Proposal for approximately 72% of the capital cost. "We are very pleased to work again with the high calibre team from Ausenco and supporting engineering firms to complete the feasibility study update as we work toward our goal of making a construction decision in 2019." said Mark Selby, President and Chief Executive Officer of RNC. "These engineering and consulting firms have a deep level of knowledge and experience from their previous work, both at Dumont and other large open pit mining projects in Canada and abroad. I look forward to the updated feasibility study results confirming the inherent value in the structurally low-cost Dumont Nickel-Cobalt Project, which is well-positioned to deliver the additional nickel and cobalt required by the early 2020s to meet strong demand growth from the stainless steel and electric vehicle markets. Dumont remains one of the world's premier battery metals projects containing the world's largest undeveloped reserves of nickel and second largest undeveloped reserves of cobalt."
Trilogy Metals Inc. (NYSE: TMQ) is a metals exploration company focused on exploring and developing the Ambler mining district located in northwestern Alaska. Trilogy Metals Inc. recently reported its third quarter results for the period ended August 31st, 2018. The Q3 highlights included a cash position of USD 30.5 Million and working capital of USD 27.2 Million. Also, on June 5th, 2018 the Company announced a maiden cobalt resource of 182.4 Million tons grading 0.019% Co for 77 Million pounds of inferred resources. On July 20th, 2018, the Company announced the filing of an updated technical report for the Bornite Project incorporating the cobalt resource and updates from the 2017 drill program at the Bornite Project. On August 23rd, 2018 the Company announced an expansion of the Bornite drilling program, with its partner, South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY), funding an additional USD 800,000 for the Company to add two drill rigs, which have subsequently completely four holes totaling approximately 2,170 meters. The 2018 program and budget at the Bornite Project which was originally USD 10 Million, includes in-fill and off-set drilling to better define and expand the high-grade copper resources at Bornite, was increased during the quarter to USD 10.8 Million with a focus on adding additional drilling towards the end of the field program. Camp opened during mid-May and a seismic program was completed in early June. Results from the seismic program have now been received and the technical teams at the Company and South32 intend to meet later this year to review and analyze the information collected.
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