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The Approximately $3 Trillion Electric Vehicle Market(1) is Highly Dependent on a Scarce Resource- Cobalt(2)

A Shortage in Cobalt Could Create a Potential “Gold Rush” for Fuse Cobalt (TSXV:FUSE)(OTC:FUSEF)

News Update:
Canadian Government Makes Joint $10 Million Investment in Cobalt Refinery Adjoining the Teledyne and Glencore Bucke Property

Unless you’ve been living under a rock, you’re probably well aware that electric vehicles (EV) are one of, if not the single hottest market in the world today.

With apparently no signs of weakness, and what looks like a good deal of demand, it could only just be getting started.

First, incoming president Joe Biden appears to be a fan of EVs.

“There are now an [estimated] one million electric vehicles on the road in the United States. But a key barrier to further deployment of these greenhouse-gas reducing vehicles is the lack of charging stations and coordination across all levels of government. As President, Biden will work with our nation’s governors and mayors to support the deployment of more than 500,000 new public charging outlets by the end of 2030.”(3)

Second, analysts appear to estimate bigger demand.

“A new report by Cairn Energy Research Advisors, a research firm focused on the battery and EV industries, predicts a surge in electric vehicle sales in 2021 as countries around the world push new programs to encourage consumers to buy battery powered vehicles.  Cairn estimates global sales of EVs in 2021 will jump [approximately] 36% and top [an estimated] 3 million vehicles for the first time ever.”(4)

Three, governments across the globe appear to be aggressively pushing for an EV-dominated future. In the U.S., for example, California Gov. Gavin Newsom appears to have signed an executive order stating that all new cars and passenger trucks sold in California must be zero-emission vehicles by 2035.(5)

For this to become a reality, however, EV automakers must have far more cobalt supply than they currently have.(6)

Unfortunately, there appears to be a severe shortage. If cobalt supply cannot meet demand, this lack of supply could potentially put a halt to the entire EV market. Why? Factories appear to be churning out only so many batteries, and it appears to be creating a bottleneck situation.(6)

This is why Fuse Cobalt (TSXV:FUSE)(OTC:FUSEF) could be well-positioned.

The Top 8 Reasons to Consider Fuse Cobalt 

  1. Joe Biden appears to be a fan of electric vehicles.  In fact, according to his website, as noted by a Bloomberg Press Release, “There are now one million electric vehicles on the road in the United States. But a key barrier to further deployment of these greenhouse-gas reducing vehicles is the lack of charging stations and coordination across all levels of government. As President, Biden will work with our nation’s governors and mayors to support the deployment of more than 500,000 new public charging outlets by the end of 2030.”(3)
  2. Analysts appear to estimate bigger demand.  “A new report by Cairn Energy Research Advisors, a research firm focused on the battery and EV industries, predicts a surge in electric vehicle sales in 2021 as countries around the world push new programs to encourage consumers to buy battery powered vehicles.”(4)
  3. Governments across the globe appear to be aggressively pushing for an EV-dominated future. In the U.S., for example, California Gov. Gavin Newsom appears to have signed an executive order stating that all new cars and passenger trucks sold in California must be zero-emission vehicles by 2035.(5)
  4. EV automakers require significant amounts of cobalt, but there appears to be a severe shortage. If cobalt supply cannot meet demand, this lack of supply could potentially put the brakes on what could be an approximately $3 trillion EV market.(6)
  5. “[Presumably] half of the current supply of cobalt is incorporated into cathodes for lithium-ion batteries, and many of those batteries are used in consumer electronics and electric vehicles.”(7)
  6. “Unlike lithium, much of cobalt is found in one place, the Democratic Republic of the Congo, or DRC—with [an estimated] 59 percent of the world’s supply sourced from that country.” This could be fueling a good deal of shortage concerns.(6)
  7. Fuse Cobalt appears to be working on two cobalt properties in Canada, including the Glencore Bucke Project and the Teledyne Project.(8)
  8. Fuse Cobalt appears to be technically attractive, as well.

Fuse Cobalt (TSXV:FUSE) (OTC:FUSEF) Appears to Be Technically Attractive

After consolidating at approximately $0.025 for the last few months, Fuse Cobalt appears to have broken out to around $0.05 as the EV market continues to see momentum. The last time the stock broke higher on the EV story was in early 2020, when it ran from approximately $0.0125 to about $0.14- good for a return of approximately 1,020%.

Most of the stock’s short-, medium-, and long-term indicators all appear to be positive as well, including its 20 Day Moving Average, 20 – 50 Day MACD Oscillator, 50 Day Moving Average, 100 Day Moving Average, and its 200 Day Moving Average.

Why is Cobalt So Essential to Electric Vehicles?

Cobalt is a hard grey metal used in chemical production and appears to be one of the key elements needed to make the EV power source. “{An assumed] half of the current supply of cobalt is incorporated into cathodes for lithium-ion batteries, and many of those batteries are used in consumer electronics and electric vehicles,” according to the American Chemical Society.(9)

However, there could be a major supply issue.  According to Wired:

“Unlike lithium, much of cobalt is found in one place, the Democratic Republic of the Congo, or DRC—with [about] 59 percent of the world’s supply sourced from that country. Among many concerns, there’s evidence of widespread use of child labor.  Then there’s the harsh economics: Cobalt is also one of the most expensive metals in EV batteries, [currently typically] costing between $33,000 and $35,000 per tonne. And we simply may not have enough supply. Research from MIT suggests there’s not enough ability to mine and process the material to meet demand. The research suggests that demand could reach 430,000 tonnes in the next decade, which is 1.6 times today’s capacity.”(6)

This is Where Fuse Cobalt (TSXV:FUSE)(OTC:FUSEF) Could Come Into Play

Tesla has garnered most of the attention and fanfare surrounding the buzz in EV. However, there is a hidden gem in the thick of this movement- cobalt miner Fuse Cobalt.

Fuse Cobalt appears to be working on several promising cobalt properties.

One of those is the Glencore Bucke Project in Ontario.

The Glencore Bucke property consists of two patented mining claims totaling approximately 16.2 ha in an area located on the west boundary of Fuse’s Teledyne Cobalt Project. Results appear to be encouraging with the majority of holes hitting cobalt mineralization including an estimated 4.45% cobalt over 0.30 metres in hole GB 17-06 and about 8.42% cobalt over 0.3 metres in hole GB-17-15 (core lengths only, not true widths).(8)

The second one is the Teledyne Project in Ontario.

In 2016, Fuse entered into an option agreement to acquire approximately 100% interest, subject to about a 2% net smelter royalty on the Teledyne Cobalt Property. In the spring of 2018, Fuse then announced that it had amended and accelerated the option agreement and had earned around 100% interest in the Property with the vendors retaining the estimated 2% NSR.(8)

The Property, located in Bucke and Lorraine Townships, appears to consist of 5 patented mining claims totaling around 79.1 ha, and around 46 unpatented mining claim cells totaling approximately 705.99 ha. The Property appears to be easily accessible by highway 567 and a well-maintained secondary road.

A third is the Teels Marsh Project, a lithium property in Nevada.

Fuse Cobalt Inc. appears to have acquired, by staking, about 100 placer claims covering around 2000 acres (809 hectares) at Teels Marsh, Nevada. (Source 8) The property, called Teels Marsh West seems to be highly prospective for Lithium brines and is located approximately 48 miles northwest of Clayton Valley and the Rockwood Lithium Mine. Access to Teels Marsh is via dirt road, west of Highway 95 and northwest of Highway 360.

Mr. Robert Setter, Company President & CEO claims:

“Our Teels Marsh West project is adjacent to the Daijin Lithium Corp.’s Teels Marsh project which comprises a land position of 3,202 hectares and 403 Placer claims. In 2018, Dajin began to move forward with construction of the engineered roads and drill pads at Teels Marsh valley in preparation for the drilling of four (4) production sized exploration wells. The area is getting a lot of attention as EV battery production builds up in Nevada and globally, and we look forward to continuing to increase the value of our strategic company assets, for the benefit of our shareholders.“

In addition, the Fuse Cobalt (TSXV:FUSE)(OTC:FUSEF) Team Has Decades of Experience

Robert Setter | President & CEO

Mr. Setter is the former Senior Financial Editor for Report on Mining and has been consulting with publicly trading companies for over a decade. In addition to Fuse, he also sits on the boards of two other listed mining companies and holds a degree in Economics from UBC. Since 2000 he has held several key positions including Research Manager, Corporate Research and Analytics and has been involved in the launch of dozens of new enterprises assisting with financing, cash flow forecasting, strategic client acquisition and planning. Mr. Setter brings over two decades of business development, marketing and resource experience to the Company.

Konstantin Lichtenwald | Director

Mr. Lichtenwald has had extensive experience as a controller, chief financial officer and a director of numerous publicly traded and private corporations in several industries. He earned his BBA from Pforzheim University, Germany, holds the professional designation of chartered professional accountant (CPA and CGA), and is a member of Chartered Professional Accountants of British Columbia and Canada. Mr. Lichtenwald specializes in providing corporate finance, valuation, taxation, financial reporting, consulting and other accounting services to both small businesses and public commodity resource companies. He also assists in many aspects of clients’ administration, financing and other activities. Mr. Lichtenwald worked at Ernst & Young GmbH, Germany, in the assurance department.

Ryan Goodman | Director

Mr. Goodman is an experienced Director and Manager of public mining companies operating in both Central and South America. Since June 2012, Mr. Goodman has acted as the VP Legal Affairs and Business Development of Aura Minerals Inc., a mid-tier gold and copper mining company listed on the TSX. Aura Minerals is a mid-tier gold-copper production company focused on the operation and development of gold and copper projects in the Americas. Prior to joining Aura Minerals, Mr. Goodman practiced corporate and securities law with a Canadian national law firm representing mining companies in the Americas in connection with initial public offerings, private placement funding, takeovers and mergers, the acquisition and disposition of mineral properties and public company maintenance and compliance including corporate governance and public disclosure.

Chip Richardson | Director

Chip Richardson is a life-long banker and currently has the role of Assistant Vice President, Investments for Wedbush Securities in Lake Oswego, a suburb of nearby Portland, Oregon. From the age of fourteen, Chip took an interest to the stock market and upon graduation from Oregon State University (B.Sc. Economics), Chip was hired as a Financial Advisor by Dean Witter Securities, now Morgan Stanley. After Dean Witter, Chip worked at Paine Webber, now UBS, before joining Wedbush in 1999.

Tina Whyte | Corporate Secretary

Tina Whyte brings over 20 years of experience in the corporate and securities industry. Her expertise spans to areas of corporate governance, continuous disclosure, financing transactions and regulatory filings and compliance. Ms. Whyte holds corporate secretary positions with other publicly listed companies.

Bill MacDonald | Advisor

Bill is a founder and principal of Macdonald Tuskey, Corporate and Securities Lawyers, a boutique securities and corporate finance firm located in Vancouver, British Columbia established in April 2008. Prior to that, from February 1998 to April 2008, he was a partner with Clark Wilson LLP and a member of the firm’s Corporate Finance / Securities Practice Group. Since May 2008, Bill has been a director of Blackbird Energy Inc., an oil and gas exploration company listed on the Exchange and was also the President of Blackbird from May 2008 until February 2013. He currently serves as a director of Viscount Mining Corp., a position he has held since October 2011, a director of Patriot Petroleum Corp. since December 2015 and a director and founder of Black Lion Capital Corp. since its inception on January 20, 2015. Bill was also previously a director of First Americas Gold Corporation, formerly Pannonia Ventures Corp. and Benz Capital Corp.

Bill Morton, MSc. P.GEO | Advisor

Bill has an impressive 40+ years in the fields of mining and geoscience, and nearly 20 years in a senior management position for public resource companies. He has been involved with several major metal exploration projects across Canada, the USA, and in Mexico. Bill is a member of APEGBC, and holds or has held director positions for Eastfield Resources Ltd., Lorraine Copper Corp., Cariboo Rose Resources Ltd., and Consolidated Woodjam Copper Corp. Bill has his B.Sc. from Carleton University, and completed his graduate studies from UBC.

Joerg Kleinboeck, P.Geo. | Advisor

Mr. Kleinboeck is a professional geologist with 20 years of mineral exploration experience in North America. Mr. Kleinboeck holds a B.Sc. (Geology) from Laurentian University and is a member of the Association of Professional Geoscientists of Ontario (#1411). Mr. Kleinboeck has held senior positions for several junior mining companies including Mineral Mountain Resources Ltd., Canadian Continental Exploration Corp., KWG Resources Inc., CBLT Inc., and Fancamp Exploration Ltd. He has been involved in grassroots exploration through to advanced projects. Mr. Kleinboeck operates JMK Exploration Consulting, a geological consulting and technical services company located in North Bay, Ontario. Mr. Kleinboeck has been involved in Fuse Cobalt’s Ontario projects since 2016.

The Top 8 Reasons to Consider Fuse Cobalt

  1. Joe Biden appears to be a fan of electric vehicles. In fact, according to his website, as noted by a Bloomberg Press Release, “There are now one million electric vehicles on the road in the United States. But a key barrier to further deployment of these greenhouse-gas reducing vehicles is the lack of charging stations and coordination across all levels of government. As President, Biden will work with our nation’s governors and mayors to support the deployment of more than 500,000 new public charging outlets by the end of 2030.”(3)
  2. Analysts appear to estimate bigger demand. “A new report by Cairn Energy Research Advisors, a research firm focused on the battery and EV industries, predicts a surge in electric vehicle sales in 2021 as countries around the world push new programs to encourage consumers to buy battery powered vehicles.”(4)
  3. Governments across the globe appear to be aggressively pushing for an EV-dominated future. In the U.S., for example, California Gov. Gavin Newsom appears to have signed an executive order stating that all new cars and passenger trucks sold in California must be zero-emission vehicles by 2035.(5)
  4. EV automakers require significant amounts of cobalt, but there appears to be a severe shortage. If cobalt supply cannot meet demand, this lack of supply could potentially put the brakes on what could be an approximately $3 trillion EV market.(6)
  5. “[Presumably] half of the current supply of cobalt is incorporated into cathodes for lithium-ion batteries, and many of those batteries are used in consumer electronics and electric vehicles.”(7)
  6. “Unlike lithium, much of cobalt is found in one place, the Democratic Republic of the Congo, or DRC—with [an estimated] 59 percent of the world’s supply sourced from that country.” This could be fueling a good deal of shortage concerns.(6)
  7. Fuse Cobalt appears to be working on two cobalt properties in Canada, including the Glencore Bucke Project and the Teledyne Project.(8)
  8. Fuse Cobalt appears to be technically attractive, as well.
Source 1: https://www.globenewswire.com/news-release/2018/07/25/1541707/0/en/Global-Market-for-Battery-Electric-Vehicles-2018-2032-A-3-Trillion-Market-Opportunity.html
Source 2: https://www.globalenergymetals.com/cobalt/cobalt-supply/
Source 3: https://www.bloomberg.com/press-releases/2020-12-10/looming-lithium-shortage-a-major-catalyst-for-mining-companies
Source 4: https://www.cnbc.com/2020/05/29/led-by-tesla-electric-vehicle-sales-are-predicted-to-surge-in-2021.html
Source 5: https://www.gov.ca.gov/2020/09/23/governor-newsom-announces-california-will-phase-out-gasoline-powered-cars-drastically-reduce-demand-for-fossil-fuel-in-californias-fight-against-climate-change/
Source 6: https://www.wired.com/story/a-cobalt-crisis-could-put-the-brakes-on-electric-car-sales/
Source 7: https://www.sciencedaily.com/releases/2020/02/200219092532.htm
Source 8: https://fusecobalt.com/wp-content/uploads/2020/04/Fuse-Cobalt-Investor-Presentation.pdf
Source 9: https://www.sciencedaily.com/releases/2020/02/200219092532.htm
Company Contact

1220 - 789 West Pender Street
Vancouver, BC V6H 1H2
Canada

www.fusecobalt.com
(236) 521-0207
[email protected]

Company Description

Fuse Cobalt Inc., is a well funded Canadian company whose focused is directed towards exploration of high value metals related to the cobalt battery industry. The Company has two 100% wholly owned properties, Glencore Bucke (subject to a back-in provision, production royalty and off-take agreement) and Teledyne (subject to a 2% NSR) Cobalt Properties, located in Cobalt, Ontario.