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.
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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.