Pala Investments’ $23 Million Acquisition of Cobalt 27


Torys advised on the transaction

Pala Investments Limited and TSXV-listed Cobalt 27 Capital Corp. 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 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.

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.

Torys advised Pala Investments with a team including Michael Amm (Picture), Josh Lavine, Robbie Leibel, Carly Klinkhoff and Justin Crawford (corporate/M&A), Tom Zverina (financing) and Craig Maurice (taxes).

Involved fees earner: Michael Amm – Torys LLP; Justin Crawford – Torys LLP; Carly Klinkhoff – Torys LLP; Josh Lavine – Torys LLP; Robbie Leibel – Torys LLP; Craig Maurice – Torys LLP; Tom Zverina – Torys LLP;

Law Firms: Torys LLP;

Clients: Pala Investments;

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Author: Ambrogio Visconti