US Cobalt (TSXV:USCO) is a development stage company with strategic lithium and cobalt deposits. Scientific Metals (“STM“) will focus its efforts on its Iron Creek Cobalt Property in the prolific cobalt trend of Idaho, and also has key lithium assets in Utah and Alberta.
Cobalt prices surged by over 50% in 2016, driven by increased demand for the mineral. Cobalt is required in large quantities for the lithium-ion batteries used in, among other things, electric cars. Swiss-based mining funds currently accumulating cobalt expect even further price gains as companies like General Motors and Volkswagen expand their electric vehicle programs.
Manufacturers’ ever-increasing need for cobalt is due to cobalt’s ability to enhance power storage, a key contributor to increased battery efficiency.
Fort Capital acted as capital markets advisor to Scientific Metals in its restructuring and financing.