The funds will be applied towards accelerated exploration at Marquee’s newly acquired interests in the Werner Lake Cobalt project in Ontario, Canada.
Marquee managing director Charles Thomas said: “The support we have received for the placement is incredibly encouraging as it will enable us to be fully funded for the earn-in to Werner Lake.”
Existing cobalt resource open in all directions
The Werner Lake project abuts First Cobalt Corporation’s (ASX:FCC) cobalt assets in north-western Ontario.
The project is one of the largest high-grade cobalt resources in Canada with over 40,000 metres of drilling previously undertaken.
Marquee will now focus on an aggressive exploration program, designed to increase the existing indicated resource of 79,400 tonnes at 0.43% cobalt which remains open in all directions.
Aiming to rapidly unlock the potential of the project
Historical high-grade sections were assayed at up to 20% cobalt, intersected by both surface drilling and underground drifting and could represent significant upside to the project’s cobalt output.
Marquee is now in the process of assessing quotes for drilling contractors.
Charles Thomas added: “We are very excited to embark on the aggressive exploration program, and are keen to rapidly unlock the significant potential of the deposit and regional surrounds.”
Cobalt price trading at decade high
Prices for cobalt have quadrupled since hitting record lows two years ago, trading at a decade high of $89,000 per tonne this week.
The batteries used in cellphones uses compounds with up to 60% cobalt and is the number one source of cobalt demand at the moment.
Only about 10% of cobalt supply currently end up in electric vehicles, but the boom in electric cars could more than quadruple demand for cobalt to more than 450,000 tonnes by 2030.