Highlands in Ramu deal with Cobalt 27

HIGHLANDS Pacific has announced a streaming deal, private placement and strategic relationship with Canada’s Cobalt 27 Capital Corp worth more than A$164 million.

Highlands in Ramu deal with Cobalt 27 Highlands in Ramu deal with Cobalt 27 Highlands in Ramu deal with Cobalt 27 Highlands in Ramu deal with Cobalt 27 Highlands in Ramu deal with Cobalt 27

The Ramu plant in PNG

Cobalt 27 has agreed to pay an upfront deposit of US$113 million for 55% of Highlands' share of cobalt production and a 27.5% share of its nickel production from the Ramu mine in Papua New Guinea, under a life-of-mine streaming deal.

Highlands will also receive volume-based payments of $1 per pound of nickel and $4/lb of cobalt.

Highlands holds 8.56% of Ramu, with operator Metallurgical Corporation of China (MCC) holding 85% and the PNG Mineral Resources Development Company (MRDC) holding 6.44%.

The deposit received from Cobalt 27 will be used to fully repay $97 million in loans outstanding to MCC relating to Ramu.

Previously, Highlands hadn't expected to repay the loans until 2022.

The repayment will immediately increase Highlands' stake in Ra...

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