The potential of two former cobalt and silver mines in northeastern Ontario has convinced Brixton Metals to form a standalone, publicly-traded, cobalt company.
Higher prices for cobalt, the flurry of recent cobalt company acquisitions and streaming deals, and strong demand coming from the electric vehicle market were cited as the reasons to create a spinoff company, said the Vancouver-based junior exploration outfit in a June 20 news release.
Brixton’s Langis Mine property is located 15 kilometres north of Temiskaming Shores. Highway 65 runs through the property.
In its heyday, the mine produced 10.4 million ounces of silver and 358,340 pounds of cobalt.
It’s Hudson Bay Mine project, located in Coleman Township near the Town of Cobalt, produced 6.4 million ounces of silver and 185,570 pounds of cobalt during its operating life.
Both properties do not contain any measured mineral resources or reserves.
The company states it wants to “tighten its focus” on its other gold, silver and copper exploration properties in northwestern British Columbia and Montana.
“If the spin-out transaction is completed,” said Brixton CEO Gary Thompson, “the newly formed company would focus on all the battery metals and would look to gain market share in that sector by advancing its cobalt assets and adding new advanced stage projects in the battery metals space, including vanadium, which has seen a similar growth rate as cobalt. Either way you shape it the battery metals market in general has a strong growth profile.”
Brixton will stay affiliated with its cobalt properties through a retained equity interest, subject to regulatory, court and shareholder approval. Further details will be announced later.