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First Cobalt consolidates ownership in Iron Creek, buys out royalty

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First Cobalt consolidates ownership in Iron Creek, buys out royalty

First Cobalt Corp. fully acquired the Iron Creek cobalt-copper project in Idaho and eliminated a 4% production royalty in favor of the leaseholder, with an initial resource estimate anticipated within the next few weeks.

Under a September 2016 agreement, the company was required to make monthly payments to the leaseholder, which also retained a 4% royalty on future production. First Cobalt could acquire a 100% interest in the property and reduce the royalty from 4% to 1% by paying US$1.5 million, with the remaining royalty able to be purchased for US$500,000 for each percentage point.

First Cobalt said Sept. 4 that it negotiated a 47% reduction of the payment to about US$1.1 million, which it then paid in full.

The company added that it started consultations and collection of baseline data for future permitting requirements at Iron Creek.

In June, the company outlined plans for a 30,000-meter drill program at the project, saying at the time that the initial resource estimate was expected by October.