TORONTO, Jan. 7, 2019 /PRNewswire/ - Cobalt 27 Capital Corp. ("Cobalt 27" or the "Company") (TSXV: KBLT)(OTCQX: CBLLF)(FRA: 27O), announces the acquisition of a royalty of 1.5% of gross revenues and A$2 per tonne of ore mined under the Reed Industrial Minerals Pty Ltd ("RIM") sub-lease agreement (the "Royalty") held by Westgold Resources Limited ("Westgold"), on the producing Mount Marion Lithium Mine located in Western Australia.  Cobalt 27 is acquiring the Royalty from Westgold for total consideration of A$250,000 (CAD$240,400), plus 200 metric tonnes of physical cobalt metal to be delivered to a LME-bonded warehouse of Westgold's choice. 

"We are committed to becoming a proxy for the large-scale transition to battery-based electric vehicles and energy storage systems.  We are also intensely focused on accelerating near-term cashflow from battery metals streams and royalties.  The producing Mount Marion lithium mine has the world's second largest high-grade lithium concentrate - spodumene reserves.  Production of lithium concentrate from the open-pit mine began in early 2017.  Acquisition of the Royalty is being largely funded by a small percentage (7%) of our existing holdings of physical cobalt.  This transaction diversifies our portfolio of battery metals into lithium and exemplifies our core strategy of solidifying Cobalt 27 as the leading battery metals streaming and royalty company," commented Anthony Milewski, Chairman and Chief Executive Officer of Cobalt 27.

The Mount Marion lithium mine is jointly owned by one of China's largest lithium producers, Jiangxi Ganfeng Lithium Co., Ltd (43.1%), Mineral Resources Limited (43.1%) and Neometals Ltd (13.8%) ("Neometals").  In 2015, Neometals, through its 70%-owned subsidiary RIM, entered into an agreement to lease the lithium mineral rights over a portion of the Hampton Area Location 53 from Westgold.  The lease applies to a 3 kilometer by 1 kilometer portion of the Hampton Freehold Location 53, containing extensions to the Mount Marion Lithium Projects Deposit 2 and 2 West, and the former WMC Deposit 3.  The initial lease period is 10 years, with options for two 5-year extensions.

Spodumene has a theoretical lithium oxide content of 8.03%. Due to its high lithium content it is considered the most important lithium ore mineral.  According to the 2016 Feasibility Study, Mount Marion has a life of mine ("LOM") lithium carbonate equivalent cash cost of US$5,345/tonne, which is below the Australian Spodumene peer average of approximately US$5,600/tonne.  Management believes the Royalty has the potential to provide Cobalt 27 with considerable cash flows over a 17-year term. 

Cobalt 27 Capital Corp. is a leading battery metals streaming company offering exposure to metals integral to key technologies of the electric vehicle and energy storage markets.  The Company owns 2,905.7 Mt of physical cobalt and a 32.6% Cobalt Stream on Vale's world-class Voisey's Bay mine,‎ beginning in 2021.  Cobalt 27 is undertaking a friendly acquisition of Highlands Pacific which is expected to add increased attributable nickel and cobalt production from the long-life, world-class Ramu Mine.  The Company also manages a portfolio of nine royalties and intends to continue to invest in a cobalt-nickel-lithium-focused portfolio of streams, royalties and direct interests in mineral properties containing battery metals.

Forward-Looking Information: This news release contains certain information which constitutes 'forward-looking statements' and 'forward-looking information' within the meaning of applicable Canadian securities laws. Forward-looking statements in this news release include, without limitation: timing of cash flow from the Royalty, cash cost and mine life of the Mount Marion lithium mine, the occurrence and timing of mining on the Hampton Area Location 53 lease, the demand for lithium and the use of lithium in EVs and energy storage systems,.  Forward-looking statements involve known and unknown risks and uncertainties, most of which are beyond the Company's control. For more details on these and other risk factors see the Company's most recent Annual Information Form on file with Canadian securities regulatory authorities on SEDAR at www.sedar.com under the heading "Risk Factors".  Should one or more of the risks or uncertainties underlying these forward-looking statements materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements.  Accordingly, undue reliance should not be placed on these forward-looking statements.