Phoenix Copper Limited: Earn-in Agreement with First Cobalt Idaho

Rhea-AI Summary

Phoenix Copper Ltd (OTCQX: PXCLF) has entered into an earn-in agreement with First Cobalt Idaho regarding the Redcastle cobalt property in Idaho. The agreement spans three phases over five years, with First Cobalt committing to invest a minimum of US$3,000,000 in exploration and a NI 43-101 compliant Preliminary Economic Assessment. Upon completing Phases 1 and 2, First Cobalt will secure a 75% ownership stake in Redcastle. This collaboration is expected to leverage First Cobalt's local resources and expertise in the cobalt and copper sectors, aiming to enhance production for the electric vehicle market.

Positive

• Earn-in agreement with First Cobalt Idaho enhances exploration potential for Redcastle cobalt property.
• First Cobalt to invest a minimum of US$3,000,000, indicating strong commitment to the project.
• Collaboration expected to leverage First Cobalt's existing infrastructure and refinery capabilities.

Negative

• None.

LONDON, May 26, 2021 /PRNewswire/ -- Phoenix Copper Ltd (AIM: PXC) (OTCQX: PXCLF), the AIM quoted USA focused base and precious metals emerging producer and exploration company, is pleased to announce that it's entered into an earn-in agreement (the "Agreement") with First Cobalt Idaho, the wholly owned subsidiary of Toronto-based First Cobalt Corporation (TSX.V: FCC, OTCQX: FTSSF), in respect of the Company's Redcastle cobalt property on the Idaho Cobalt Belt.

The Agreement, divided into three phases across a five-year period, will see First Cobalt spend a minimum of US$3,000,000 in exploration and related work at Redcastle, as well as fund a NI 43-101 compliant Preliminary Economic Assessment for the property. Following completion of Phases 1 and 2, First Cobalt will earn a 75% ownership of Redcastle and will enter into a JV agreement with Phoenix wherein both parties will share the capital expenditure for the development of Redcastle in accordance with their respective ownership interests.

To view the full details of the Agreement refer to the announcement dated 24 May 2021: https://phoenixcopperlimited.com/documents/News/Earn-in%20Agreement%20with%20First%20Cobalt%20Idaho%20on%20the%20Redcastle%20Cobalt%20Property.pdf

Ryan McDermott, Chief Executive Officer, commented:

"We are delighted to be partnering with First Cobalt. Redcastle, with its 600-acres of unpatented mining claims, shares a common border with First Cobalt's Iron Creek property which hosts indicated cobalt and copper resources of 2.37 million tonnes.

"First Cobalt is well-positioned to carry out exploration at Redcastle with the expertise, staffing, and infrastructure, which includes mining and processing capacity for the Redcastle ore, already in place locally. Additionally, First Cobalt owns the only cobalt refinery in North America which will receive cobalt from the Idaho operations. The refinery will employ a low carbon footprint hydrometallurgical process and will provide battery grade refined cobalt sulfate suitable for the EV market.

"This Agreement, and the progress currently being made at our Empire Mine, is supported by a strong macroeconomic environment for the materials required for the sustainable energy transition. The U.S. Administration has proposed an infrastructure bill that supports the domestic production of base metals required for global electrification and clean energy initiatives.

"I look forward to working with First Cobalt in the development of Idaho based cobalt and copper resources."

For further information please visit https://phoenixcopperlimited.com or contact:

Phoenix Copper Limited

Ryan McDermott Dennis Thomas Richard Wilkins

Tel: +1 208 954 7039  Tel: +44 7827 290 849 Tel: +44 7590 216 657

 

View original content:http://www.prnewswire.com/news-releases/phoenix-copper-limited-earn-in-agreement-with-first-cobalt-idaho-301300071.html

SOURCE Phoenix Copper Limited

FAQ

What is the agreement between Phoenix Copper and First Cobalt Idaho?

Phoenix Copper has entered an earn-in agreement with First Cobalt Idaho for the Redcastle cobalt property, which involves a minimum investment of US$3,000,000 in exploration over five years.

How much will First Cobalt invest in the Redcastle project?

First Cobalt has committed to invest at least US$3,000,000 in exploration and related work at the Redcastle property.

What is the expected outcome of the agreement between Phoenix Copper and First Cobalt?

Upon completing specific phases of the agreement, First Cobalt will earn a 75% ownership stake in the Redcastle property, leading to a joint venture for its development.

What is the significance of the Redcastle cobalt property?

The Redcastle cobalt property is strategically located in the Idaho Cobalt Belt and is expected to contribute to the production of battery-grade refined cobalt sulfate, essential for the electric vehicle market.