Pala Investments Ltd. will acquire all of Cobalt 27 Capital Corp.’s common shares, other than the approximately 19% that Pala already owns, for total consideration of approximately C$501 million. Under the terms of the transaction, Cobalt 27 shareholders will receive C$5.75/share, comprised of C$3.57 in cash plus C$2.18 in shares of a newly listed company to be named Nickel 28 Capital Corp.

“As a long-term investor, this transaction is aligned with our strategy of building sustainable value chains around the raw materials that support a changing economy,” said Stephen Gill, managing partner of Pala.

“We look forward to remaining a supportive shareholder of Nickel 28, as it goes forward with a clean balance sheet to continue building its asset base, in particular, by leveraging its recently acquired exposure to the producing Ramu nickel-cobalt mine.”

Nickel 28 will hold Cobalt 27’s joint-venture interest in Ramu, a low-cost, long-life producing nickel-cobalt mine, its royalty portfolio on future projects, including the Turnagain royalty, a royalty over one of the largest undeveloped nickel sulphide projects globally, the Dumont royalty, a shovel-ready nickel project in Canada, and certain equity positions including in Giga Metals Corp.

Nickel 28 will be funded with US$5 million in cash at inception with no corporate debt. Pala will retain a 4.9% interest in Nickel 28, and the current Cobalt 27 leadership team will continue as the board and management of Nickel 28.

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