First Cobalt awards cobalt sulfate crystallizer contract as it updates on Canadian refinery commissioning

First Cobalt Corp (CVE:FCC) (OTCQX:FTSSF) (FRA:18P) updated on its path to bring North America’s only permitted cobalt refinery back into production, saying it had awarded the contract to build the cobalt sulfate crystallizer. 

This equipment, which includes pumps and dryers, is the last step in the refining process and takes cobalt concentrated in an aqueous solution into a powder called cobalt sulfate. 

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It will be built in the US and be shipped to site in less than 44 weeks, the company said, adding that it remains on track to recommission the facility in 4Q, 2022.

“Thanks to the focus and hard work of the First Cobalt team, we continue to execute our strategic business plan and remain on schedule for 2022 commissioning,” said Mark Trevisiol, the vice-president (VP) of project development.

“Ordering the cobalt crystallizer in a timely manner was an important step on the construction schedule and the focus now shifts to the solvent extraction vendor package.”

The formerly operating cobalt refinery sits north of Toronto and could produce over 25,000 tonnes of cobalt sulfate per year from third-party feed.

First Cobalt and Ausenco Engineering are now working on detailed engineering and procurement of the last two long lead equipment orders, namely solvent extraction tanks and filters.

Lender discussions for a US$45 million debt facility are also advancing, supplemented by C$18 million in working capital plus an additional C$10 million investment by the Government of Canada and the Government of Ontario towards the refinery capital costs, the company added.

The relevant Ontario Ministry, on May 10, has also issued a new permit to take water from Lake Timiskaming covering potable water supply and industrial use.

Two other permit applications for air and noise and industrial sewage are expected in the coming months.

First Cobalt’s owner’s team also continues to grow with the appointment of a site services superintendent and environmental superintendent – Hayden Fiset and Cristy Knott respectively -  the company added.

First Cobalt is committed to an ongoing dialogue with local stakeholders, First Nations and indigenous communities that will continue through permitting and construction and into operations, it added.

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