Potential Cobalt (Game Changer)27 Jan 2018 19:24
KOLWEZI in the DEMOCRATIC REPUBLIC of CONGO
Trip to Kolwesi - https://twitter.com/JBrewerMining/status/897972945901015041
Red Rock Resources Plc, has entered into a conditional agreement with Cobalt Blue Limited, to acquire an interest in a Joint Venture company to be newly formed for the exploitation of four or five copper/cobalt tailings. Cobalt Blue is an Isle of Man vehicle created by the interests of 1620 Capital Pty Ltd of Perth and Exchange Minerals.
Some 50% of cobalt demand is now estimated to come from the rechargeable battery sector. The increased demand for electric vehicles and greater use of cobalt in lithium batteries is widely expected to lead to higher cobalt demand, and this expectation has since 2016 been reflected in rising cobalt prices. Half or more of known cobalt reserves are in the DRC, and a similar proportion of cobalt production (66,000 of 123,000 tons in 2016) comes from the DRC.
The DRC has historically been an important source of copper, and recent discoveries suggest that its importance may increase, Copper is currently seeing rising demand and prices including an increase in demand from the electric car industry.
VUP holds exploration licenses 9687 (covering Kalemba) and 9684 (covering Kamirombe), with the right to proceed to a production license upon completion of feasibility, from La G�n�rale des Carri�res et des Mines SA, a DRC State body.
The transaction is subject to satisfactory due diligence, which is expected to cover technical, infrastructural, and legal matters as well as political and other risk factors and the availability of funding on satisfactory terms to finance mineral development in the DRC.
The Agreement provides that should the Project not commercially match the estimates provided by VUP (approximately 22m tons containing 375,000 metric tons of contained copper and 35,000 metric tons of contained cobalt, citing G�camines records up to 1999), then the Luilu tailings (estimated similarly by VUP at 50m tons) will be added to the Project.
A 0.4% NSR Royalty equivalent is payable to COB, and upon commencement of commercial production, RRR will have the right within sixty days to terminate this obligation by paying $1m as a royalty termination fee.
Cobalt Prices - 1 year - Http://www.infomine.com/investment/metal-prices/cobalt/1-year/
Cobalt Prices - 5 years - Http://www.infomine.com/investment/metal-prices/cobalt/5-year/
Kolwezi Updates
3rd November 2017 - The Company has carried out drilling on the first two tailings, Haute Kalemba and Basse Kalemba, and deliveries of samples have been made to the SGS laboratories in Lubumbashi for testwork. Work continues with a view to testing the other tailings locations.
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