First Cobalt Corp. said Feb. 2 that it signed a nonbinding letter of intent with Cobalt Projects International Corp. to assess the latter's asset portfolio, with a view to pursuing an acquisition.

Cobalt Projects holds an option to acquire a series of mining licenses and claim groups in the Cobalt Ontario mining camp in Ontario.

If completed, the deal would complement the 1,950 hectares First Cobalt recently acquired in connection with its purchase of Cobalt Industries of Canada Inc.

First Cobalt, meanwhile, noted that it will undertake a nonbrokered private placement of up to 7.5 million shares at 40 Canadian cents apiece, to raise up to C$3.0 million.

Proceeds of the offering will be used to support the company's ongoing operations as well as to review acquisition opportunities.