First Cobalt to get C$10 million in public funding to accelerate commissioning and expansion of cobalt refinery in Northern Ontario

First Cobalt Corp (CVE:FCC) (OTCQX:FTSSF) announced Wednesday that it will receive C$10 million in public funding from the federal government and the government of Ontario.  The critical funding will allow the company to accelerate the commissioning and expansion of its cobalt refinery in Northern Ontario, attract new investment, and execute against its strategic business plan. On the news, the company’s stock jumped 86% to US$0.20 a share in New York and 67% to C$0.23 a share in Canada.  READ: First Cobalt commences geophysical survey to follow up on high-grade silver and cobalt intercepts at Canadian Cobalt Camp Key terms under the agreements with both governments are as follows: Government of Canada: C$5 million interest-free loan, through the Federal Economic Development Initiative for Northern Ontario Government of Ontario: C$5 million non-repayable grant, through the Northern Ontario Heritage Fund Corporation Once complete, the facility will be the first of its kind in North America, capable of producing 25,000 tonnes of battery-grade cobalt sulfate annually, which could represent five percent of the global market for refined cobalt First Cobalt's refinery project has an estimated capital cost of C$77 million (US$60 million), including federal and provincial contributions totaling C$10 million. This support will help secure well-paying, long-term jobs in Northern Ontario. And the refinery will add another significant piece to the automotive supply chain in Canada, following recent announcements by both levels of government in support of battery electric vehicle production. As global EV sales continue to set new records, First Cobalt said it will play a critical role in the growing North American supply chain and this investment reinforces Canada's position as an automotive powerhouse as the auto industry positions itself for an electric future. "Today's announcement is a transformational investment from the federal and provincial governments and is further validation of the strategic plan that our management team has been executing for many months,” said John Pollesel, board chairman. “This funding sends a strong signal to investors that our plan is credible, achievable, and realistic. Looking ahead, the enhanced credibility this funding brings will help attract investment partners to this critical project.” CEO Trent Mell noted: “Global demand for cobalt is increasing as electric vehicles become more widely adopted. Our refinery will be the only source of domestic cobalt for the North American electric vehicle industry and it will also be well positioned to support the European market.” Mell said the cobalt feed material that the company will process will be certified as ethically sourced and conflict-free.  “Moreover, our goal is to build the greenest cobalt refinery in the world. Initial indications are that our refinery will have CO2 emissions that are 50% lower than our benchmark peer – and we will not stop there," he said.  Project overview The First Cobalt Refinery is a hydrometallurgical cobalt refinery located north of Toronto, in the community of Temiskaming Shores. The facility was permitted in 1996 with a nominal throughput of 12 tonnes per day and operated intermittently until 2015, producing cobalt, nickel, and silver products. In May 2020, the company completed an engineering study that confirmed the refinery's suitability to treat cobalt hydroxide at an expanded throughput of 55 tonnes per day to produce a high purity, battery grade cobalt sulfate. Today, about 80% of global supply comes from China and there is no production in North America. In conjunction with the feasibility study, First Cobalt said discussions have been ongoing with potential automotive offtake partners as well as several lenders interested in providing the balance of the capital required to complete the project. Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham