Ego commissioning cobalt facility

Loan advances totalling $6 million will contribute to startup of a cobalt recovery plant in Cobalt, Ont.

Commissioning is to begin this month on Ego Resources’ (TSE) new facility, which is designed to produce high-purity, value-added cobalt compounds. The company has secured feed from the tailings of a former silver-cobalt producing mine at Cobalt.

Credit facilities, in the amounts of $2 million and $4 million, were arranged with two private lenders. The loan advances are repayable over terms of 18 months and three years, and are secured against the Cobatec project. The credit facilities include Ego’s issuance, to the lenders, of three warrants to purchase an aggregate of 510,000 shares at $2.20, $2.30 and $2.50 per share. One warrant to buy 110,000 shares will expire Dec. 31; the remaining two warrants will expire July 8, 1996.