Cobalt 27 Capital Corp (TSXV:KBLT) is leading mining stocks today on the TSXV. Mining stocks have begun to flood the top trading stocks to start off the new year. Let’s take a closer look at why Cobalt 27 is dominating the market.
Cobalt 27 Capital Acquires Highlands Pacific
Cobalt 27 Capital Corp operates out of Toronto, Ontario as a mineral resource company. The mining company focuses specifically on cobalt, as its name would suggest. Cobalt 27 Capital has royalty interest in seven exploration-stage properties in Canada and Vietnam.
Cobalt 27 announced this morning that it has entered into an agreement to acquire Highlands Pacific Limited. This announcement is the reason that Cobalt 27 is among the top trading mining stocks today. The mining company will acquire all issued ordinary shares of Highlands.
Anthony Milewski, CEO of the mining stock, said that “The acquisition of Highlands will allow Cobalt 27 to gain a direct interest in the Ramu nickel-cobalt mine and materially increase its attributable exposure to the mine’s nickel production from 27.5% to 100% and cobalt production from 55% to 100%, relative to the previously announced Ramu Cobalt Nickel Stream.”
He continued on to say that “It does so at nearly half the cost of the previously announced Ramu Cobalt Nickel Stream, provides increased balance sheet flexibility, and enhances value for Cobalt 27 shareholders. It also brings cash flow to our business, something we have told our shareholders was important from the beginning.”
This acquisition boosts Cobalt 27’s exposure to the large, low-cost, high-growth nickel and cobalt mine Ramu. In addition to its interest owned in Ramu, the mining stock owns interest in Star Mountains Copper Gold.
Mining Stock Movement
According to Yahoo Finance, KBLT is trading on the TSXV at $3.74 a share, up +$0.44 (+13.33%). Cobalt 27 remains one of the top mining stocks trading on the TSXV for the number of trades executed.
Featured Image: Twitter