TSX-V-listed Cobalt 27 has completed the acquisition of Highlands Pacific, bolstering the company's prospects of growing into a diversified battery metals streaming and royalty company.
As a result of the acquisition, Cobalt 27 now holds an 8.56% joint venture interest in the producing Ramu mine, a long-life, low-cost nickel/cobalt operation located near Madang on the north coast of Papua New Guinea.
Ramu was financed, constructed and commissioned in 2012, by majority-owner and operator Metallurgical Corporation of China, for $2.1-billion which, at the time, was China's largest overseas mining investment.
In 2018, the Ramu mine achieved record annual production of 35 355 t of nickel and 3 275 t of cobalt. Following repayment of Highlands' attributable construction and development loans, Cobalt 27's ownership interest in the Ramu mine, and attributable nickel and cobalt production, would increase to 11.3%.
"We are very pleased to announce the closing of the Highlands acquisition and joint venture interest in the producing Ramu nickel/cobalt mine," said chairperson and CEO Anthony Milewski.
"We look forward to working with owner and operator Metallurgical Corporation of China, to advance the mine to its full potential for decades to come. With the completion of this acquisition, we have significantly strengthened Cobalt 27's asset base and are well positioned to deliver long-term shareholder value."