Name of the Project
First Cobalt refinery – recommissioning and expansion project.

Location
Ontario, Canada.

Project Owner/s
First Cobalt Corp.

First Cobalt and Glencore signed a memorandum of understanding on May 21, 2019, outlining the terms of a potential partnership to produce refined cobalt for the North American market.

Project Description
The First Cobalt refinery is the only permitted primary cobalt refinery in North America.

The project entails the recommissioning of the refinery at 12 t/d in late 2020 and then completing a 55 t/d expansion by the fourth quarter of 2021.  At the expanded throughput, the parties expect that the refinery could produce an estimated 25 000 t/y of battery cobalt sulphate for the North American market.

First Cobalt is also considering a dry stack tailings management facility as an alternative to tailing impoundments for the 55 t/d operating scenario. Dry stacking or filtered tailings have a number of benefits, including a smaller environmental footprint and lower water-treatment requirements.

Potential Job Creation
The project will create direct full-time employment for up to 30 people.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Total capital investment under the three phases is estimated at $45-million.

On August 26, 2019, Glencore extended a $5-million loan to complete advanced engineering, metallurgical testing, fieldwork and permitting associated with the project, which will culminate in a definitive feasibility study for a 55 t/d refinery expansion.  Subject to certain conditions, Glencore is prepared to advance an additional $40-million to complete this project.

Planned Start/End Date
The feasibility study is scheduled for completion in the first quarter of 2020. The refinery is expected to be recommissioned by the fourth quarter of 2020.

Latest Developments
The feasibility study for an expansion of the First Cobalt refinery is in the final stages and will be concluded in the coming weeks.

Commenting on the current market developments, First Cobalt president and CEO Trent Mell has said that while the uncertainty owing to Covid-19 has put downward pressure on commodities, First Cobalt has implemented modified work practices that have minimal impact on its schedule.

First Cobalt plans to initially recommission the refinery in partnership with Glencore in the fourth quarter and then expand production as early as the second half of 2021.

First Cobalt has also assured stakeholders that it is well-capitalised, with sufficient cash-on-hand to execute its objectives. It has enough cash to cover its operations for the next 12 months and has additional dedicated funds to advance work at the refinery.

Key Contracts and Suppliers
Ausenco Engineering Canada (equipment inspection); Knight Piésold (geotechnical drilling) and Story Environmental (baseline studies, permit compliance).

On Budget and on Time?
As of November 30, 2019, the feasibility study was on budget and on time.

Contact Details for Project Information
First Cobalt Corp, tel +1 416 900 3891 or email info@firstcobalt.com