Pala Investments to acquire Cobalt 27

On June 18, 2019, Pala Investments Limited ("Pala") and TSXV-listed Cobalt 27 Capital Corp. ("Cobalt 27") announced they have entered into an agreement pursuant to which Pala will acquire 100% of Cobalt 27's issued and outstanding common shares, other than the approximately 19% that Pala already owns, for total consideration of approximately C$501 million on a 100% basis. Under the terms of the transaction, Cobalt 27 shareholders will receive C$5.75 per common share, comprised of C$3.57 in cash plus C$2.18 in shares of a newly listed company to be named Nickel 28 Capital Corp. ("Nickel 28").

Nickel 28 will be created to hold Cobalt 27's joint venture interest in Ramu, a low-cost, long-life producing nickel-cobalt mine, its royalty portfolio on future projects including the Turnagain royalty, a royalty over one of the largest undeveloped nickel sulphide projects globally, the Dumont royalty, a shovel-ready nickel project in Canada and certain equity positions including in Giga Metals Corporation. Pala will retain a 4.9% interest in Nickel 28, and the current Cobalt 27 leadership team will continue as the board and management of Nickel 28.

The transaction is subject to the approval of Cobalt 27 shareholders by a two-thirds vote (and a majority vote excluding votes of Pala and certain other interested persons) at a meeting expected to be held in August 2019. The transaction is expected to close by late August 2019.

Further information can be found on Canada Newswire's website.

Cobalt 27 is a leading battery metals streaming company offering exposure to metals integral to key technologies of the electric vehicle and energy storage markets.

Pala is an investment company focused on the raw materials value chains that drive the global economy.