Cobalt 27 acquires Highlands Pacific, enhances existing portfolio

The acquisition will offer Cobalt 27 a direct interest in the Ramu nickel-cobalt mine and increase its exposure to the mine’s nickel produce.

Canada’s mineral company, Cobalt 27 Capital Corp., has recently entered into a definitive agreement with Brisbane-based resources firm, Highlands Pacific to acquire all the issued shares of Highlands by means of a scheme of arrangement in Papua New Guinea (PNG).

Sources close to the deal cite that the key points of the transaction include the development of a diversified, high-growth battery metals streaming company, increased exposure to a long-lasting, low-cost, Ramu nickel-cobalt mine, enhanced portfolio, accretive to Cobalt 27 shareholders and repayment of partner loans of Ramu after closure.

Anthony Milewski, CEO & Chairman, Cobalt 27, said that the acquisition of Highlands will allow the company to attain a direct interest in the Ramu mine and substantially increase its attributable exposure to the mine’s nickel production from 27.5% to 100% and cobalt production from 55% to 100%, relative to the earlier announced Ramu cobalt-nickel stream.

He said that the deal will provide improved balance sheet flexibility, enhanced value for Cobalt 27 shareholders and will bring cash flow to the firm’s business, much needed by shareholders since commencement.

For the record, Ramu is majorly operated and owned by MCC (Metallurgical Corp. of China Ltd). MCC owns a 67.02% stake in MCC-JJ Mining and 100% stake of MCC Ramu NiCo Ltd. The Government of Papua New Guinea and local property-owners own a 6.44% stake in Ramu, which is expected to rise to 8.7% upon repayment of development and construction loans, claim sources.

Reports claim that MCC had backed and constructed the Ramu mine for $2.1 billion and is currently assessing a potential expansion of the cobalt-nickel mine, which could cost around $1.5 billion. Details regarding further potential expansion are yet to be finalized.