Equator Resources Ltd (ASX: CO1), now known as Cobalt One, could be about to go through yet another name change in the near future.
This morning the cobalt miner revealed plans to merge with Canada-based First Cobalt.
According to the release, First Cobalt has made a non-binding, conditional expression of interest to acquire 100% of the shares in Cobalt One by way of a court approved scheme of arrangement.
While the proposal is subject to a number of conditions, including due diligence, both parties have signed a letter of intent to create a leading pure-play cobalt exploration company.
Under the terms of the proposal, Cobalt One shareholders would receive 0.145 of a First Cobalt common share for each Cobalt One ordinary share. This represents the equivalent of 11 Australian cents per Cobalt One share.
Which is 10% higher than where the Cobalt One share price traded at prior to the trading halt.
