Public Companies

Ethics 101 – CobalTech Mining (TSXV:CSK)

If you are not currently knowledgeable of where most the world’s cobalt is coming from and how it is mined, please take a minute to Google “Cobalt Mining” and maybe have a look at the images as well.

CobalTech Mining’s assets and technology have provided them the foundation to become North America’s first vertically integrated cobalt processing company with the capacity to take mineralized ore through production to high-tech metals for use in the lithium battery industry. .. Under North American standards.

Continued progress towards North American leadership

As we referenced in previous CobalTech Mining articles, the Cobalt sector is enjoying a renaissance, with 2017 being the predicted “big year” for Cobalt.  The primary utilization, and the driving force behind the interest, is the Lithium Ion battery.  Just like Lithium before it, Cobalt has been discovered by industry experts and investors alike to have a significant role to play in developing technologies not just with batteries, but with cutting edge alloys and tooling as well.  One of the most trying aspects for a public company is maintaining interest while time passes, so we decided to take a look to how CobalTech Mining has been progressing since we last looked in on them.

Since the February 16th article ( https://www.venturerecon.com/2017/02/16/csk/ ) activity with CobalTech has been steady.  Within a week of writing that article, the company announced that it had signed a letter of intent to acquire a Cobalt processing plant, that was already fully permitted, conveniently located geographically to the company’s other properties.  This significant and important development will allow CobalTech to both refine and process Cobalt placing the company in very exclusive company in North America.  Currently, the plant can process and refine up to 4000 tonnes per day and can expand to more one further permits are acquired.  Our readers may recall that the primary source of Cobalt is the DRC and their industry practices are forcing customers to find more palatable solutions.  Mr. Bruce Bragagnolo, company Chairman stated that, “this acquisition will position CobalTech ahead of its competition in supplying the growing demand for ethically sourced cobalt.”  Unfortunately, in April, CobalTech announced that the above letter of intent had been terminated.  The share price has reflected this setback and until matters are settled, the company will have to wait to acquire such a significant aspect to their overall business plan.  Further to the termination of the LOI, CobalTech announced in early May that they were going to seek remedy from the owner of the plant in the form of damages and “a proprietary interest” in the refinery in question.  This issue will likely take some time to play out.

Although the company has experienced its first setback, wedged in between the refinery acquisition and the subsequent cancelation was the announcement in March, that it had acquired a property called Werner Lake East, a Cobalt property near Kenora, Ontario.  “The property consists of 9 mineral claims adjoining Global Energy Metals Corp’s Werner Lake Cobalt Project and including the Werner Lake East Mineral Occurrence areas. The property is underlain by an east-west magnetic trend parallel to the main Werner Lake trend and covers a total area of approximately 537 ha (1328 acres) in size.”  This area is an established area for Cobalt and all geological reports indicate it’s a good target for Cobalt.  The resilience of CobalTech was shown when just a day after the announcement of legal action pursuant to the refinery, the company announced that they had acquired four claims near Cobalt, Ontario.  The new claims are believed to be in “the heart of the Cobalt Camp” and CobalTech reports that the claims “complement the Company’s land package in the area.”  Another significant property related news release occurred just last week when it was announced that final payment had been made on CobalTech’s flagship property, Duncan Kerr.  For more on the Duncan Kerr Project, please read the following ( https://www.venturerecon.com/2017/01/28/cskintro/ ).

The most recent announcement came just over a week ago on May 11th when CobalTech announced that it now has control of 343 hectares in the famed ‘Cobalt Camp”, including 11 former producers or “advanced exploration projects”.

“CobalTech has recently begun a compilation of the available historical data for all of its properties, to produce a comprehensive database of surface and underground information. The Company will also incorporate geophysical, geochemical and any additional information deemed pertinent to assist in the assessment of the properties.”

It is anticipated that the results of these efforts could be presented in late summer or fall.  The company also reports a diamond drilling program should follow the results of the geological information gathered over the next few months.  CobalTech did not shy away from some of the industry problems that have come up recently, and included those findings in their news release.  The primary concerns center on the price of Cobalt and concerns of stockpiling and supply issues that “may be artificially inflating the cobalt price.”  

Our understanding from watching CobalTech is, that the intentions for the future are to become not only a mining company, but a producer as well.  A significant step is ownership and the direction CobalTech is showing investors lends to that commitment entirely.  A “ground to market business”, is how the company would like to refer to itself.  Although there is a burgeoning interest in Cobalt, a continued rise may take beyond this year to materialize, giving investors time to get in early if patience is a virtue and knowledge is gained.  CobalTech currently sits at 14 cents per share, with a 52 week high of 35 cents per share, the price has settled in the wake of both industry and company specific circumstances.   Despite that, CobalTech continues to progress and although the industry specific problems are confining the market, it may be a blessing for CobalTech and investors, the company can focus on its development, with the appearance of time to do it, and investors can begin to consider where the ethical sources of Cobalt will be.  It is likely that CobalTech will be one of them.

Read what other Investors are saying about CobalTech in our mobile friendly CobalTech Forum – Click Here


CobalTech Mining is a client to an arm’s length party to one of the owners of VentureRecon.com and that party owns shares of CobalTech Mining.

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