Cobalt 27 Capital Corp has closed a deal to buy the equivalent of 32.6% of the cobalt production from a unit of Vale, creating the world's first pure cobalt stream.
The production will come from Vale's Voisey's Bay mine, including its proposed expansion, and will start from January 2021. The electric metals investment vehicle has paid Vale an upfront cash consideration of $300 million, which represents a prepayment of a portion of the purchase price for the sale of cobalt, a key raw material used in batteries for electric vehicles. The company will also make ongoing payments equal to 18% of the cobalt reference price for each pound of...