Northern Cobalt Limited (ASX: N27) is a resource company which explores and develops battery and strategic metals like cobalt and lithium. On 19 December 2018, Northern Cobalt announced that it has staked 48 mineral claims over the Snettisham Vanadium Project on south-western Alaska. Following this news, the share price of N27 increased by 4.444 percent as on 19 December 2018 (12:50 PM AEST).
Northern Cobalt was able to acquire 100 percent of the Snettisham Vanadium Project by simply pegging the ground, which resulted in a very low-cost acquisition. As per N27’s Managing Director (MD) Mr. Michael Schwarz, this acquisition will give Northern Cobalt an exposure to demand for the metal in vanadium flow batteries and the increasing demand for use in high strength steel in the building industry.
Northern Cobalt believes that Snettisham is having a unique position regarding fundamental infrastructure requirements such as cheap electricity, transport options and proximity to the mining town of Juneau in southern Alaska. The Snettisham Vanadium Project is located in the Juneau Province in south-western Alaska and due to its close proximity to the ocean, lack of frozen tundra and hilly nature of the terrain, the exploration activities at the project can continue all year around supported by barges and helicopters.
Northern Cobalt is planning a detailed magnetic survey which will be done through drone technology early in the new year. After the data is collected, the company will undertake a detailed three-dimensional magnetic modelling to identify locations of the highest concentrations of magnetite.
Earlier on 19 December 2018, Northern Cobalt’s securities were placed into a trading halt at the request of N27 pending the release of an announcement in relation to a tenement acquisition. As per the company’s request the securities were to remain in a trading halt until the earlier of the announcement to the market or the commencement of trade on 19 December 2018. The above announcement has been in conjunction with the requested halt.
Recently, the company confirmed copper and cobalt mineralization at Running Creek, NT. The company reported 55 m @ 0.78% Cu from 0 m (hole 18RAB102) which includes-
- 33 m @ 1.08% Copper from 11 m.
- 13 m @ 2.01% Copper from 11 m.
- 12 m @ 380 ppm Co from 22m.
On 28 September 2018, the company issued 2.5 million unquoted performance rights as officer remuneration, from which 2 million rights were approved by shareholders at the 2018 AGM and remaining 0.5 million rights were issued under the Company’s Performance Share Plan. As at 30 September 2018, the company was having a cash position of $2.22 million. During FY 2018, the company defined two new copper-cobalt prospects in addition to the existing Stanton Cobalt Deposit. The company is evaluating a number of new exploration opportunities in the energy metals sectors including vanadium, lithium, and cobalt.
In the last six months, the share price of Northern Cobalt decreased by 64.71 percent as on 17 December 2018. N27’s shares traded at $0.094 with a market capitalization of circa $4.57 million as on 19 December 2018 (AEST 12:50 PM).
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