International Cobalt Resources Limited (ASX:ICR) Executive Director, Benjamin Cooper discusses the company’s key projects in Canada and Australia, drill program and upcoming IPO.
Jessica Amir: Hello my name’s Jessica for the Finance News Network. Today I’m with International Cobalt Resources Executive Director, Benjamin Cooper. Hi Benjamin and welcome.
Benjamin Cooper: Hi Jess.
Jessica Amir: For those who haven’t heard of your company before, just give us a quick introduction?
Benjamin Cooper: International Cobalt Resources Limited, we’re targeting cobalt because of the demand for cobalt in the market and we’re about to list on the Australian Stock Exchange. We’re raising money to advance our three exploration projects that we have in Canada. Now cobalt’s very hard to find and it’s a by-product of nickel or copper, or goldmine. It’s not surprising that we’re targeting gold geology, nickel geology, copper geology, in an attempt to find cobalt as well.
Our three main projects in Canada have had high-grade results returned in the past. Various infrastructure advantages due to the favourable location, for instance, we are very close to operating mines, processing facilities. And I’ve assembled a team in Canada that consists of mining engineers, geologists and specialists in the particular geologies associated. As well as a Board and management team in Australia that have specific mining experience.
For instance our Chairman, Mr David Barwick, very experienced Chairman of public companies over many decades and he has presided over companies that have gone into mine production, in Canada, in America. And also he’s the current Chairman of a successful company, Jumbo Corporation Limited (ASX:JUM), which he has been involved in ever since it was a market cap of less than $10 million, all the way through to today, where its market cap is in excess of $250-$260 million. So we’ve got an experienced team, we’ve got really exciting exploration projects and we’re in a very clean and tight structure.
Jessica Amir: Now can you tell us about your three key projects?
Benjamin Cooper: The first project we’ll be focused on will be Blue Mac. Blue Mac is in Sudbury, in Ontario. And it’s an exciting little project, because we’ve got some old historic mine shafts there, where previous owners have gone down as far as 50-60 feet and returned really high-grade gold, and cobalt numbers. So we’d like to get on the ground there and do some sampling, and also some diamond core drilling. That’s a cobalt gold veining system, very close to previous mines like the Scadding Gold Mine, which was very high-grade, and existing mines, both in Sudbury, Timmins, McEwans, operating goldmines and facilities in the area.
The second project would be Dickson, now that’s in the cobalt embayment area of Ontario, on the east side. And that’s where we have silver cobalt mineralisation, near the famous City of Cobalt itself. And then a little further east into Quebec, we are part of the greenstone belt, the Belle Terre, where there’s nickel, copper, cobalt, altogether in the same rock source. Now 100-200 metres away from where we’ll be drilling, along strike from our project, there’s been incredibly high-grade nickel and copper and cobalt, found by our neighbours. So we’re in the right geological area and we’re targeting three different types, because cobalt’s so hard to find, and the world needs more explorers making discoveries.
Jessica Amir: Now to the IPO. How much are you looking to raise and where will the funds be going?
Benjamin Cooper: The raise is only a small one, $5 million at 30 cents a share. So we will have about 34 million to 35 million shares on issue. At 30 cents a share, means our market cap will be $10 million. And that’s significant, because the enterprise value of the company will only be $5 million. And yet, we’ll have a healthy cash position of $5 million to deploy straightaway, into those exciting exploration projects.
Jessica Amir: Lastly Benjamin. How can investors get involved, and also tell us why this IPO is so compelling?
Benjamin Cooper: If an investor wishes to go into our website, they can obtain the prospectus, they could ask their licensed adviser, or they could contact the lead manager of the float, which is Sequoia Financial Group.
International Cobalt Resources Limited is a compelling investment opportunity, because investors in the IPO get exposure to really experienced proven management team, who have taken exploration projects all the way into production. We’ve got the right projects in the right areas of Canada that not only have had high-grade gold, copper, nickel exploration results in the past, but the infrastructure advantages are compelling. Very close to operating mills and mines. We ourselves have had high-grade results and so have the previous owners. And we’re in a really tight structure.
The IPO itself, very low enterprise value, low market cap, high cash position. So I think all of that positioned in a red-hot nickel and cobalt market, which is forecast to increase, I think they’re all substantial reasons that come together and make International Cobalt Resources Limited, a very compelling investment case.
Jessica Amir: Benjamin Cooper, thank you so much for your time and good luck with the IPO.
Benjamin Cooper: Thanks Jess.