Marquee Resources Ltd (ASX:MQR) has concluded the first tranche of its $2.65 million share placement to sophisticated investors, via the issue of 3,582,500 shares at 35 cents each to raise $1,253,875.
Marquee will use the funds for accelerated exploration at its newly acquired interests in the Werner Lake Cobalt project in Ontario, Canada.
The project is one of the largest high-grade cobalt resources in Canada with over 40,000 metres of drilling previously undertaken.
Historical high-grade intersections of up to 20% cobalt
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 will focus on an exploration program designed to increase the existing indicated resource of 79,400 tonnes at 0.43% cobalt which remains open in all directions.
Demand for rechargeable batteries and supply constraints have lifted the price of cobalt to 10-year highs.
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.
Around two-thirds of the world’s supply is mined in the highly unstable Congo, where a supply shortage is likely brewing.