Pala Will Buy Cobalt 27, Create Nickel 28


Pala Investments Ltd. will acquire all of Cobalt 27 Capital Corp.s common shares, other than the approximately 19% that Pala already owns, for total consideration of approximately C$501 million. Under the terms of the transaction, Cobalt 27 shareholders will receive C$5.75/ share, comprised of C$3.57 in cash plus C$2.18 in shares of a newly listed company to be named Nickel 28 Capital Corp.

As a long-term investor, this transaction is aligned with our strategy of building sustainable value chains around the raw materials that support a changing economy, said Stephen Gill, managing partner of Pala. We look forward to remaining a supportive shareholder of Nickel 28, as it goes forward with a clean balance sheet to continue building its asset base, in particular, by leveraging its recently acquired exposure to the producing Ramu nickel-cobalt mine.

Nickel 28 will hold Cobalt 27s joint-venture interest in Ramu, a lowcost, long-life producing nickel-cobalt mine, its royalty portfolio on future projects, including the Turnagain royalty, a royalty over one of the largest undeveloped nickel sulphide projects globally, the Dumont royalty, a shovel-ready nickel project in Canada, and certain equity positions including in Giga Metals Corp.


As featured in Womp 2019 Vol 07 - www.womp-int.com