Cobalt 27 identified cobalt as a commodity with attractive supply-and-demand fundamentals driven by the rapidly growing electric vehicle and battery energy storage markets. The Company’s management team evaluated various opportunities to invest in cobalt and decided the most attractive structure would be to create a company with an asset base underpinned by physical cobalt material and enhanced with growth opportunities in the form of streams, royalties and direct interests in mineral properties containing cobalt.
Cobalt 27’s strategy of holding physical cobalt, streams and royalties will avoid the operational, environmental, closure and capital risks associated with typical mining companies. Similarly, Cobalt 27 will not be exposed to any operational risks borne by the automakers and battery producers. By holding physical cobalt and cobalt streams and royalties, the Company will be able to participate in cobalt price appreciation while minimizing exposure to risks.
Acquisition opportunities will be sought or derived from a number of sources, including, but not limited to, management’s contacts in commodities trading and the resources industries. Acquisitions will be subject to an initial screening process. If the initial screening indicates that further evaluation of a potential acquisition is warranted, then a due diligence review thereof will be conducted. If a decision is made by management to proceed with the proposed acquisition, the proposed transaction will then be presented to the Board of Directors for final screening and approval.
Cobalt 27’s objective is to achieve appreciation in the value of its physical cobalt position and accretively grow its cobalt exposure through the acquisition of additional physical cobalt, streams, royalties and direct interests in mineral properties containing cobalt.