Cobalt Blockchain Announces Termination of Negotiations for DRC Cobalt Hydroxide Plant
Toronto, Ontario--(Newsfile Corp. - April 22, 2021) - Cobalt Blockchain Inc. (TSXV: COBC) (OTC Pink: COBCF) ("COBC" or the "Company") announced today that negotiations have terminated with Traxys Europe S.A. ("Traxys") for the establishment of a commercial relationship with respect to the Traxys-owned cobalt hydroxide plant located in Lubumbashi, Democratic Rebublic of the Congo. The parties had entered into a letter of intent in August of 2018 which contemplated further negotiations for the operation of the plant by COBC, a trade finance facility to be provided by Traxys to COBC, and an offtake agreement in favour of Traxys for cobalt concentrate produced from the plant. Negotiations between the parties have been ongoing since the signing of the letter of intent. The cobalt hydroxide plant was to have comprised a core piece of the Company's conflict-free, ethically sourced mining, processing, and metals trading platform.
Peter Copetti, Chairman and CEO of COBC, commented: "We are extremely disappointed that the significant time and effort expended by management on negotiations with Traxys did not result in a concluded transaction for this asset. In light of this development, the board, with the assistance of the recently established Special Advisory Committee, intends to conduct a review of the Company's business plan and strategy and make appropriate adjustments to advance the Company's business."
About Cobalt Blockchain Inc.
Cobalt Blockchain Inc. (TSXV: COBC) is a Canadian resource company expanding its exploration and development business to include cobalt assets in the Democratic Republic of the Congo. The Company believes that it is the first mining and mineral trade company set up specifically to procure cobalt in compliance with the Organisation for Economic Co-operation and Development ("OECD") due diligence framework. COBC has developed and is implementing a blockchain-based reporting platform to provide greater certainty of provenance and further assurance that all minerals procured are ethically-sourced.
For more information on the Company, investors should review the Company's filings at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/81378