US Cobalt Inc. (USCO.V) coverage was initiated on September 1, with subsequent notes on December 26 and January 17. The company's core project is Iron Creek located in Lemhi County, Idaho, USA. Since our last update, the following releases were issued.
Jan. 18 - Stock options granted (2M) at. $0.71 cents.
Jan. 31 -Appoints Garett Macdonald as Technical Advisor.
Feb. 7 - Expanded Diamond Drill Sampling, Increases Widths of Iron Creek Cobalt Mineralized Envelop.
Feb. 23 - Initiated 2018 Underground Exploration Drilling to Follow Up on the Successful 2017 Surface Drilling.
Mar. 1 - Drills Additional High Grade Cobalt and Extends Mineralization Beyond the Historic Estimate Targets.
The term of the acquisition are as such: "...all of the US Cobalt issued and outstanding common shares will be exchanged on the basis of 1.5 First Cobalt common shares for each US Cobalt common share issued and outstanding (the "Exchange Ratio"). The Exchange Ratio represents a 61.8% premium to US Cobalt's closing price and a 58.5% premium based on both companies' 5-day volume-weighted average trading prices, both as at March 13, 2018 ".
While the premium offered by First Cobalt was generous, investors who sold today did very well. On February 14th, USCO.V closed at $0.66 cents, and today $1.25. For now, we'll be closing our coverage of USCO.V and explore future options in the Cobalt space.
PS. Today's news, was foreshadowed by abnormal volume - 10 of the last 13 days (76%) had volume above the mean for the the last three months.
DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.