First Cobalt eliminates Iron Creek project royalty
First Cobalt acquired full ownership of its Idaho-based Iron Creek project and eliminated its royalty, the company announced yesterday.
The Iron Creek project was previously under lease to First Cobalt. Under the terms of the lease, First Cobalt was required to make monthly payments and the leaseholder retained a 4% royalty over future production, both of which could be eliminated through a one-time payment. First Cobalt and the leaseholder agreed to a 47% reduction of this payment to US$1.07 million, which has now been paid in full.
As of June 30, 2018, First Cobalt reported a cash balance of $20 million and an additional $2 million in current assets.
First Cobalt’s Iron Creek property consists of mining patents and exploration claims with some infrastructure including 600 metres of drifting from three adits and an all-weather road connecting the project to a state highway.
One historic estimate (non-compliant with NI 43-101) by Noranda Inc. reported 1.3 million tons grading 0.59% cobalt and 0.3% copper, using a cutoff grade of 1% copper equivalent.
A new NI 43-101-compliant mineral resource estimate calculation is being developed.