Pala Investments closes $342M privatization of Cobalt 27 Capital

Cobalt 27 Capital Corp. (TSX-V: KBLT) and Pala Investments Limited have completed previously announced plan of arrangement. Under the terms of the Arrangement, each Cobalt 27 common share held was exchanged for C$4.00 in cash and one common share with an implied value of C$1.92 of newly created Conic Metals Corp.

Cobalt 27 Capital Corp. is a leading battery metals streaming company offering exposure to metals integral to key technologies of the electric vehicle and energy storage markets. Cobalt 27 holds an 8.56% joint venture interest in the long-life, world-class Ramu mine which currently delivers near-term attributable nickel and cobalt production. Cobalt 27 also manages a portfolio of 11 royalties focused on nickel and cobalt. Cobalt 27 also owns physical cobalt and a cobalt stream on the Voisey’s Bay mine.

Conic will hold Cobalt 27’s 8.56% joint venture interest in the Ramu nickel-cobalt mine, the portfolio of 11 royalties , shares of Giga Metals Corporation, shares of Minerva Intelligence Inc., and will be capitalized with US$5.0 million in cash and no debt.

The TSX Venture Exchange (TSX-V) has conditionally approved the listing of the Conic common shares and Conic common shares are expected to commence trading on the TSX-V in early November under the symbol “NKL”.

Pala had 85,474,974 shares outstanding, effectively valuing Cobalt 27 (minus Conic)’s equity at approximately $342 million. Pala owned approximately 19% of the outstanding shares.

Cobalt 27 Capital Corp. completed a $300 million bought deal priced at $9.75 per share in June 2018.

photo credit: Cobalt 27 Capital

News Release

COBALT 27 AND PALA INVESTMENTS ANNOUNCE COMPLETION OF ARRANGEMENT

TORONTO, ONTARIO, October 25, 2019 — Cobalt 27 Capital Corp. (TSXV: KBLT) (“Cobalt 27” or the “Company”) and Pala Investments Limited (“Pala”) are pleased to announce the completion of the previously-announced plan of arrangement under the Business Corporations Act (British Columbia) (“Arrangement”) which provided for the acquisition by Pala of 100% of Cobalt 27’s issued and outstanding common shares (other than the approximately 19% that Pala already owned), and the creation of Conic Metals Corp. (“Conic”).
The Arrangement was approved by Cobalt 27’s shareholders at an annual general and special meeting held on October 11, 2019, and by the Supreme Court of British Columbia on October 16, 2019. Under the terms of the Arrangement, each Cobalt 27 common share held was exchanged for C$4.00 in cash and one common share of Conic.

The TSX Venture Exchange (the “TSX-V”) has conditionally approved the listing of the Conic common shares and it is anticipated that the Conic common shares will commence trading on the TSX-V in early November under the symbol “NKL” upon final acceptance of Conic’s Form 2B Listing Statement and other related deliverables. Cobalt 27 intends to promptly apply to de-list its common shares from the TSX-V and cease to be a reporting issuer in each of the provinces and territories of Canada.

Arrangement Questions
Registered Cobalt 27 shareholders who have questions or require assistance with submitting their Cobalt 27 shares to the Arrangement may direct their questions to TSX Trust Company, who is acting as depositary under the Arrangement by email at TMXEInvestorServices@tmx.com or at (416) 342-1091 or toll-free at 1 (866) 600-5869. Non-registered Cobalt 27 shareholders should contact their brokers or other intermediary with any questions or for instructions or assistance with submitting their Cobalt 27 shares for the Arrangement. Further information regarding the Arrangement is also available in the management information circular of the Company dated August 13, 2019, as supplemented on October 3, 2019, copies of which are available under Cobalt 27’s profile on SEDAR at www.sedar.com.

About Pala

Pala is an investment company focused on the raw materials value chains that drive the global economy. Pala’s team has extensive experience, with a strong track record of successful investments and value creation. Pala seeks to assist companies by providing strategic support and innovative solutions in development, growth and turnaround situations. Pala invests across all raw materials as well as the associated businesses critical to building sustainable value chains for the future, including extraction, processing, recycling, logistics and technology.

FOR FURTHER INFORMATION PLEASE CONTACT:
For Cobalt 27:
Justin Cochrane
President & COO
+647 846 7765

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. No securities regulatory authority has either approved or disapproved of the contents of this news release.