First Cobalt to buy U.S. Cobalt in all-stock deal

First Cobalt (OTCQB:FTSSF) agrees to acquire U.S. Cobalt (OTCQB:USCFF) in a share exchange that represents a 61.8% premium to U.S. Cobalt’s closing price on the Toronto Stock Exchange.

First Cobalt, which says it has the only refinery in North America capable of producing battery materials, is looking to develop 50 historic mines in Ontario, while U.S. Cobalt owns the Iron Creek Cobalt Project in Idaho.

The combined company will seek to provide a source of cobalt outside of the Democratic Republic of Congo, which is responsible for more than 60% of supplies of the metal.