On 7 December 2018, Cobalt Blue Holdings Limited (ASX: COB) made an announcement regarding a capital raising in which the company informed that it has received firm commitments from investors for a share placement to raise gross proceeds of $1.68 million. Following the release of this news, the share price of the company decreased by 2.222 percent as on 7 December 2018.
As per the offer, around 8.4 million new shares will be issued at a price of $0.20 per share. The fund raised through the capital raising will be used for the company’s current drilling programme and additional working capital. The allotment of the shares is scheduled to happen on 14 December 2018.
Earlier on 6 December 2018, the securities of the Cobalt Blue Holdings were placed in a trading halt at the request of COB for a period of up to 2 days pending an announcement regarding the finalization of a material fundraising.
Further, on another announcement on ASX, the company informed that Broken Hill Prospecting Limited (ASX: BPL) has initiated a fourth dispute with COB related to the validity of COB’s compliance with the stage 2 earning obligation under the Thackaringa Joint Venture.
On 5 December 2018, Cobalt Blue Holdings made an announcement providing the update on Thackaringa Cobalt project drilling and water supply, in which the company informed that the Assays received to date from the drilling have affirmed the continuity of high-grade cobalt mineralization at the Pyrite Hill deposit with further potential for Resource growth identified through down-dip extension.
In the month of November 2018, two rigs commenced drilling possible extensions at the Pyrite Hill deposit which will targets down dip extension (below 50mRL) and is considered a significant opportunity for Mineral Resource growth.
Cobalt Blue, an exploration company, focused on green energy technology and strategic development to upgrade Mineral Resource at the Thackaringa Cobalt Project, announced that it has secured up to 1.5 GL of water per annum which will be supplied by Essential Water on the western outskirts of Broken Hill. These reliable sources of high-quality water will meet the processing requirements at the Thackaringa Cobalt Project which will be a significant milestone for the company.
The company has also started a heliborne geophysical survey to locate pyrite style anomalies and till ow the geophysical survey has located large exploration targets which are going to be further examined. Due to the rapidly evolving battery market demand, the Cobalt demand is also increasing rapidly due to which the company is trying to build up its relationship with the countries like China, Japan, and Korea which are key cobalt refining countries.
In the last six months, the share price of the company decreased by 80.93 percent as on 5 December 2018. COB’s shares traded at $0.220 with a market capitalization of circa $26.14 million as on 7 December 2018 (AEST 4:00 PM).
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