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Global Cobalt Aims To Become Consolidator In Cobalt Market

|Includes: Global Cobalt Corp (GLBCF)

Global Cobalt's (CVE:GCO) (OTCBB:GLBCF) chief executive Erin Chutter has reiterated the company's commitment to its strategy of becoming a consolidator in the cobalt market.

In a video interview by Investing News Network, Chutter explains that while it has been a tough market, the company's focus is on its core strategic imperative of becoming a consolidator.

She highlights that the company has been able to focus on development funding at the project level, not just at the corporate level, to minimize shareholder dilution while rebuilding value.

Global Cobalt is focused on developing its advanced-stage Karakul cobalt project in Russia, but recently expanded its horizons by acquiring the Iron Creek cobalt property in Idaho, giving it a foothold in the famed Idaho Cobalt Belt.

The chief executive says the move was borne partly from a response to concerns of shareholders, who were worried about the company's significant Russian exposure. As a result, it has reached out to bring in new projects, while continuing to maintain Karakul.

Because cobalt prices have been jumping over the last 18 months amid a big push on the demand side, mainly driven by the battery space, Global Cobalt has been able to seek domestic projects in both Canada and the US.

Chutter says that from discussions with the company's Chinese partners and other sources, management believes there will be a new scramble for cobalt supply, which has always been fragile, according to the CEO interview.

Amid this backdrop, Global Cobalt also owns the Werner Lake cobalt property in northwestern Ontario, and is looking to bring in other projects to achieve its primary goal of becoming a consolidator.

At the same time, despite not being able to access project funding due to the geopolitical environment in Russia and weak capital markets, it has continued to work with Chinese suppliers to complete technical and economic assessments at Karakul.

The company spent months completing a 45-hole drilling campaign at Karakul, and earlier this summer surprised even management with the strength of the NI 43-101 technical report, after the maiden compliant resource showed larger-than-expected tonnages in both the indicated and inferred categories on the historic project.

Chutter explains that some title difficulties with its partner, Imperial Mining, at Karakul have led the company to agree to a standstill on its option agreement. The standstill will remain in effect until at least January 31, 2015, also allowing the two parties to agree on amendments to the option deal.

"We wanted to make sure we could continue to work on the agreement while keeping the option in good standing," she said.

To watch the full interview, please click here.