Monday, September 15, 2025

First Cobalt Sees Glencore Take 4.8% Stake In Company Via Debt Conversion

First Cobalt (TSXV: FCC) this morning announced that it will be settling an outstanding debt with Glencore via the issuance of shares. The arrangement will see a $5.5 million outstanding loan settled via shares, resulting in Glencore having a notable stake in the firm.

The debt to equity conversion is in relation to a loan agreement entered into by the company back in August 2019. At the time, First Cobalt needed funding to undertake engineering studies, metallurical testwork, and permitting for the expansion of the Ontario refinery for the production of battery-grade cobalt.

As part of the arrangement, Glencore was eligible to convert the debt to equity at a 15% discount to the market price of First Cobalt’s equity. As a result, the debt to equity conversion is set to take place at a price of $0.29 per share, resulting in the issuance of 23.8 million shares of First Cobalt to that of Glencore, leaving Glencore with a 4.8% stake in the company.

Following the close of the transaction, First Cobalt will have removed substantially all debt currently on its books, however a financing process for the debt portion of the refinery financing plan is currently underway. Once completed, it will provide the remaining funding required to see the cobalt processing facility completed.

First Cobalt last traded at $0.355 on the TSX Venture.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Tesla Discussed Taking Equity Stake in Swiss Mining Company Glencore

Tesla (NASDAQ: TSLA) allegedly held talks with Glencore about a potential equity stake in the...

Monday, October 31, 2022, 11:30:23 AM

First Cobalt: Will The DRC’s Action Give The Company A Lift?

In late May, the Democratic Republic of Congo (DRC) reinstated an export ban on cobalt...

Monday, June 7, 2021, 11:43:00 AM

Teck Resources is Still Assessing Offers From Potential Buyers Amid Hostile Takeover Bid From Glencore

Teck Resources Ltd. (TSX: TECK.B) is still actively evaluating various offers for its steelmaking coal...

Monday, July 31, 2023, 02:56:00 PM

Glencore Backed US Critical Minerals Moving to PEA | Stillwater Critical Minerals with Michael Rowley

In this interview at the Commodities Global Expo 2024, Michael Rowley, CEO of Stillwater Critical...

Sunday, November 3, 2024, 11:13:00 AM

Congo Extends Cobalt Export Ban 3 Months to Combat Oversupply

Congo’s mining regulator announced Saturday it will maintain restrictions on cobalt shipments for another three...

Tuesday, June 24, 2025, 12:57:00 PM