The demand for cobalt is being driven by the continued growth in the electric vehicles sector, which is resultantly driving the demand for this coveted metal.
In light of the future fundamentals of cobalt, Sula Iron and Gold has altered its strategy and resultantly changed its name to African Battery Metals following the acquisition of a controlling interest in a cobalt licence in the Democratic Republic of Congo (DRC) in December 2017.
African Battery Metals acquired two cobalt-copper exploration licences, and also has pipeline access, via partners, to further licenses in the battery metal space both in the DRC and other African countries and a prospective high grade gold exploration project in Sierra Leone.
“We are bullish on the outlook for cobalt and the other battery metals and believe that the creation of African Battery Metals will provide UK equity investors with exposure to this battery metal, which some analysts see as the battery metal with the tightest supply/demand fundamentals,” says CEO Roger Murphy.
“It is our strategy to leverage its access to a significant project pipeline, to become a substantial operator in this market sector.
“The complementary skills of our bard and the experience of our technical advisors, Madini, of operating within the DRC provides us with, I believe, an advantage in operating in the region, where most of the world's cobalt is found.
The addition of cobalt to African Battery Metals’ existing gold assets in Sierra Leone, provides important diversification to its exploration activities.
“We remain committed to our Ferensola gold project and to maintaining and valorising it through a joint venture or farm-out, as previously announced,” Murphy comments.
The company’s shares have commenced trading under the new name of African Battery Metals and the ticker “ABM”.