The fundraising, which has been arranged by SP Angel, is conditional, inter alia, upon Sula Iron and Gold shareholders’ approval of each of the resolutions and admission.
The net proceeds of the fundraising will be used:
- to capitalize a new company to be incorporated in the DRC which will be 70% owned by Sula Iron and Gold and 30% by the vendor which will hold the cobalt licence
- to provide working capital to commence systematic geological exploration work under the cobalt
licence, so commencing the process leading to the definition of an initial JORC-compliant cobalt and copper resource
- to buy-back the D-Beta new shares
- to provide working capital to Blue Horizon, Sula Iron and Gold’s subsidiary which carries out its gold and iron exploration activities in Sierra Leone
- to assess other cobalt-copper opportunities in DRC; and
- for general working capital purposes
“We are very excited to announce this significant addition to Sula Iron and Gold’s strategy and exploration activities,” comments Sula Iron and Gold CEO, Roger Murphy.
“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 cobalt, which some analysts see as the battery metal with the tightest supply/demand fundamentals.
“The complementary skills of our board and the experience of our technical advisers, 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 our existing gold assets in Sierra Leone, provides important diversification to our 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,” concludes Murphy.
Feature image credit: Wikimedia