“The purchase of this groundwater allocation delivers one of the regulatory requirements for the Broken Hill Cobalt Project. This de-risks the Project by not having to purchase on market tightly held groundwater licenses in the Adelaide Fold Belt MDB Groundwater Source.”
KEY POINTS:
- Cobalt Blue Holdings Limited (ASX:COB) is pleased to announce a purchase of 650 unit shares* for the allocation of groundwater within the Adelaide Fold Belt MDB Groundwater Source and Adelaide Fold Belt North Western Groundwater Source. This allocation of groundwater will ensure the Broken Hill Cobalt Project (BHCP) will comply with the requirements of the Water Management Act 2000 for the estimated groundwater interception attributed to the proposed open cut mining operations.
- Existing groundwater allocation shares are limited and tightly held amongst a small number of license holders within the Adelaide Fold Belt MDB Groundwater Source. This purchase represents a substantial building block for the BHCP and removes a significant project risk associated with the future purchase of sufficient groundwater share units at a reasonable cost to enable the BHCP to commence operations.