Canada Cobalt gets processing facility in PolyMet deal

Canada Cobalt Works has inked a deal to acquire PolyMet Resources' assets, including PolyMet Labs and the only mineral and precious metal processing facility in the northern Ontario silver-cobalt camp that is permitted and operating
Canada Cobalt gets processing facility in PolyMet deal Canada Cobalt gets processing facility in PolyMet deal Canada Cobalt gets processing facility in PolyMet deal Canada Cobalt gets processing facility in PolyMet deal Canada Cobalt gets processing facility in PolyMet deal

The lab and mineral processing facility, Canada Cobalt confirmed, would form its new headquarters. Photo: PolyMet Labs

The C$650,000 (US$492,000) cash-and-shares letter of intent transaction has multiple benefits for Canada Cobalt, both immediate and long-term, including a bullion furnace to pour payable silver and gold bars. In addition, a 23,400-square-foot (2,174-square-metre) facility with sampling and analytical capabilities will be able to host its Re-2OX process.

The lab and mineral processing facility, the company confirmed, will become its new headquarters. It is ideally located in the town of Cobalt, immediately neighbouring a rail line and near its Castle mine and Beaver property.

Also, the sampling and analytical facility specialises in high-grade mineralisation and provides commercial assaying, crushing, screening, grinding, bulk sampling, upgrading and smelting services. This will enable it to drive multiple revenue streams

"PolyMet has demonstrated that, in an eight-hour shift, it can pour up to 10 dore silver bars of 1,000 ounces each (90% to 95% fine)," Canada Cobalt said. "PolyMet is currently making inroads into the potentially lucrative e-waste business that can be leveraged through Canada Cobalt, its extensive relationships and its Re-2OX process."

Material from mixed computer boards is now being processed through the facility's shredder and ball mill for precious and base metal recovery. Looking forward, Canada Cobalt said it will be able to achieve "significant ramp-up in growth and profitability" via its plan for facility upgrades alongside an aggressive sales strategy.

"We appear to have entered a dynamic new cycle for silver and gold, which could really help to ignite this business in terms of its traditional drivers, while we're seeing exciting new opportunities in the e-waste sector that can be more fully exploited through this transaction," PolyMet Resources majority owner Gino Chitaroni said.

"Bullion pouring, bulk sampling, commercial assaying and e-waste are PolyMet's four key immediate profit centres that merge with Canada Cobalt, creating powerful new synergies. Hosting Re-2OX and accelerating the development of such a unique and environmentally friendly process at this facility is a major coup for the town of Cobalt and the broader district."