First Cobalt (TSXV: FCC) is one step closer to beginning construction on its cobalt refinery in Ontario. The company this morning announced that it has entered into an exclusivity agreement for debt financing.
The agreement, entered into with an unnamed lender, is for US$45 million in debt financing. The debt is expected to cover the capital costs related to the recommissioning and expansion of the firms cobalt refinery. The arrangement effectively allows for a due diligence period to occur before negotiations for a final definitive arrangement are conducted.
While the lender was unnamed, the entire financing process for the facility is currently being led by CIBC Capital Markets. The process as a whole is being performed by the company before a formal construction decision for the facility is completed.
Permitting is currently underway despite this decision as of yet being made, with construction eligible to begin in mid 2021, with full commissioning being achievable in the latter half of 2022.
First Cobalt last traded at $0.37 on the TSX Venture.
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