Cobalt 27 Capital entered into an $80 million revolving term credit facility led by National Bank of Canada and a syndicate of financial institutions, including Bank of Montreal and The Bank of Nova Scotia.
The facility will be used for general corporate purposes and investments in the mineral industry, including the acquisition of streams, royalties and other interests.
Cobalt 27 intends to increase the size of the facility as it builds its cobalt-focused investment portfolio.
“Adding a revolver to our balance sheet is an important step towards becoming a cash flow positive streaming company. This facility, combined with our recently completed equity financing, significantly strengthens Cobalt 27’s liquidity and provides the financial capacity to accelerate our plans to close streaming transactions,” said Anthony Milewski, chairman and CEO of Cobalt 27.
The revolver is secured by the company’s assets and has an initial term of two years, which is extendable by mutual consent of all lenders and Cobalt 27. The initial drawdown is subject to the satisfaction or waiver of certain conditions precedent customary for a financing of this type.
Cobalt 27 Capital is a minerals company that offers direct exposure to cobalt, an integral element in electric vehicle and battery energy storage technologies.