Cobalt Blue Holdings Ltd (ASX:COB) will acquire 100% ownership and legal title of the Broken Hill Cobalt Project as part of an agreement with Broken Hill Prospecting Ltd (ASX:BPL).
The two companies have executed a binding Heads of Agreement (HOA) which will result in dissolution of the Thackaringa Joint Venture (TJV) and provide COB with full control and continuing management of the project.
This agreement follows the Independent Expert Determination on Monday that confirmed that COB and BPL have 70:30 respective interests in the project.
Catalyst for discussions
COB and BPL have used the determination as a catalyst for discussion resulting in the HOA.
The suspension of trading in COBs securities has now been lifted with shares up 21% to 17 cents.
Both companies said they were delighted that a commercial outcome had been reached that would allow the development of the project with benefits accruing to shareholders of both companies.
The Broken Hill Cobalt Project, which was formerly known as the Thackaringa Cobalt Project, is west of Broken Hill in the far west of NSW.
Agreement terms
Under the binding HOA BPL will receive:
- $500,000 cash;
- 9 million COB fully paid ordinary shares at a deemed issue price of 15 cents per share;
- $1 million three-year convertibRead More – Source
