Cape Lambert Resources Ltd (ASX:CFE) has completed its recently outlined share placement and raised about $1.1 million in funding and also settled creditors to the value of $63,000.
The funds raised will be used for exploration expenditure activities at the Kipushi Cobalt-Copper Tailings Project in the Democratic Republic of Congo.
Cape Lambert’s chairman Tony Sage said: “We are delighted to have received strong demand for the placement.”
READ: Cape Lambert Resources engineering study supports low-cost cobalt operation
Sage added: “Cape Lambert has received a positive response since releasing the engineering study results recently completed by Minnovo.”
The engineering study investigated building a leaching plant at the Kipushi project to process the existing tailings.
The value of the project is highlighted by the low forecast operating cost of US$64.66 per tonne against cobalt prices of around US$70,000 per tonne.
READ: Standard & Poor's says cobalt supply fears remain high
A recent report by Standard & Poor's has highlighted that risks remain high around the supply of ethically sourced cobalt.
End-use manufacturers such as Apple Inc (NASDAQ:AAPL) are putting in place assurances to guarantee that their cobalt is ethically sourced.
This bodes well for companies developing ethical cobalt projects such as Cape Lambert.