Northern Cobalt Limited (ASX: N27) announced controlled placement agreement (CPA) with Acuity Capital to raise equity capital of $2 Mn till December 31, 2020. Under the agreement, Northern Cobalt has full control of the placement process which includes utilization of CPA, the minimum issue price of shares, the timing of each placement tranche, and the quantum of issued shares.
The company within its rights has the power to terminate the CPA at any time with five Business Days’ notice, without cost or penalty.
Under the execution terms of CPA, the company has the authority to set a floor price and the final issue price. As per the calculation, final issue price will be set as the greater of that floor price and a price of up to a 10% discount to a Volume Weighted Average Price (VWAP) over a period of N27’s choosing.
The capital raised will be used to provide the company’s exploration activities and for general working capital. In terms of collateral, the company has agreed to place 2. 5 million fully paid ordinary shares at nil consideration to Acuity Capital. Northern Cobalt would have the right to terminate CPA at any time and buy back the shares at nil consideration.
In previous announcement, N27 has completed its 3D modelling of a detailed helicopter borne magnetic survey over the Snettisham Vanadium Project in Southern Alaska which has shown historical surface samples of magnetite rich rock chips indicating the vanadium potential, with values up to 35.9% Fe, 0.56% V2O5 and 6.47% TiO2. Complex algorithm was used to calculate the distribution of magnetite based on its physical properties, primarily, its magnetic susceptibility. The process has resulted into prediction of a very large magnetite body beneath Snettisham in the order of 2.5-kilometre-long, up to 600-meter-wide and over 2 kilometre deep from less than 50 meter beneath surface.
In its quarterly activities and cashflow updates, the company mentioned about Snettisham Vanadium Project in Alaska, Running Creek Copper Cobalt Project in Wollogorang Cobalt Project, and Gregjo Copper-Cobalt Prospect in Wollogorang Cobalt Project.
In Running Creek Copper-Cobalt Project, the company in its drilling identified 0.37% Cu and 450 ppm Co. The new induced polarisation survey highlighted a chargeable target beneath mineralization. In Gregjo Copper-Cobalt Prospect, the company identified large induced polarisation chargeability in multiple traverses across the Gregjo Prospect.
On stock information, Northern Cobalt’s share last traded at $0.065 up 3.175% (As on March 15, 2019) with the market capitalization of ~$3.23 Mn. Its loss per share was last noted at 0.029 AUD. It opened the trading day with a price of $0.065 with the daily volume of 100,000. Its 52 weeks high has been noted at $0.065. Its absolute return for last 1 year, 6 months, and 3 months are -83.42%, -51.54%, and -23.17% respectively.