Cobatec Given Green Light In Refinancing Efforts For Extraction Plant

After a 12-day demonstration test, Cobatec Inc.'s solvent extraction plant in Northern Ontario has been given the "thumbs up" to begin processing a nickel/cobalt feedstock from Cuba.

An independent consultant's report states that during the 12-day test period, the Cobatec plant achieved a cobalt recovery rate of 95 percent and reached a production level of 1000 pounds of cobalt per day. A nickel recovery rate of 94 percent was achieved during the same period and reached a production level of 2,000 pounds of nickel per day. The demonstration test was commissioned by Octagon Capital Canada Corp., the lead brokerage firm involved in the refinancing of Cobatec.

"These independent test results confirm once and for all that our solvent extraction process is indeed state-of-the-art," said Trevor G. Wheeler, president and CEO of Cobatec. "This is very positive news and should now clear the way for our much-needed refinancing."

Once the refinancing is in place, Cobatec plans to expand the plant's processing capacity from an average of 7-10 tonnes of nickel/cobalt feedstock per day to an average of 30-36 tonnes per day. The refinancing will also enable the company to purchase the Cuban feedstock on a continuous basis and thereby avoid any further interruptions in the plant's operation.

For more information: Neal Mednick, Cobatec Inc., tel: 416-947-9002.