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Reuters: Vale eyes first-of-its-kind Canadian cobalt streaming deal

Published 01/30/2018, 02:12 PM
© Reuters.  Reuters: Vale eyes first-of-its-kind Canadian cobalt streaming deal
VALE
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  • Vale (VALE -0.5%) is looking to sell un-mined cobalt worth hundreds of millions of dollars to investors, amid rising prices over a shortage of the metal needed to make batteries, Reuters reports.
  • Streaming, which allows an investor to make an upfront payment in exchange for future production at a discounted price, has expanded as a form of finance for precious and base metals companies but this deal would be a first for the cobalt sector, according to the report.
  • Vale reportedly has hired Canada’s Bank of Montreal to raise ~$500M from bidders for cobalt that will be produced at its Voisey’s Bay nickel mine in eastern Canada.
  • Now read: What Can We Learn From Cobalt's Fundamentals?


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