Case Studies

Cobalt 27 acquires Highlands Pacific in $130m takeover

Piper Alderman was pleased to advised Cobalt 27 on the complex and challenging $130m takeover of Highlands Pacific.

Team: Mark Gordon, Mark Williamson, Sina Kassra, Christopher Lyons, Egor Serov, Sam Blight

Service: Corporate & Commercial | Mergers & Acquisitions
Sector: Energy & Resources | Mining

Toronto-based battery minerals company, Cobalt 27 Capital Corp. (“Cobalt 27”) (TSXV: KBLT) (OTCQX: CBLLF)(FRA: 27O) was advised by Piper Alderman on the takeover by scheme of arrangement of Highlands Pacific Limited (“Highlands”) and its financing. The transaction value of the scheme of arrangement (which completed on 17 May 2019) was circa $130m. Parallel with the scheme, Cobalt 27 sold the Frieda River Asset (an asset of Highlands Pacific) to PanAust. Cobalt 27 invests in minerals that are integral to key technologies of the electric vehicles and battery energy storage markets. The acquisition of Highlands increased Cobalt 27’s exposure to the Ramu nickel-cobalt mine in Papua New Guinea – creating a leading high-growth, diversified battery metals streaming and royalty company.

Piper Alderman acted as Cobalt 27’s lead counsel on the scheme of arrangement, with Stikeman Elliott LLP and Dentons acting as Cobalt 27’s Canadian and PNG counsel respectively.

The team at Piper Alderman that was led by Mark Williamson included Partner Sina Kassra on the Frieda River transaction, Partner Mark Gordon on the financing, as well as Senior Associate Christopher Lyons and Lawyers Egor Serov and Sam Blight.

Piper Alderman Partner, Mark Williamson, said:

“This transaction involved numerous complex and novel issues. The challenges came thick and fast, but we are very pleased to have been able to overcome those challenges through fantastic teamwork and innovative thinking. We are delighted to have assisted Cobalt 27 in completing this deal that will see them become an even more significant player in the battery minerals market.”