US COBALT INC COM NPV (OTCMKTS:SCTFF) Is A Top New Mining Play

US COBALT INC COM NPV (OTCMKTS:SCTFF), the mining company, has moved a lot lately. The recent decision of the company to focus on cobalt and its recent name change to US Cobalt Inc. has been appreciated by the market. The move is quite brilliant, as in this way the company will be able to cover the increasing demand of cobalt produced by the rising growth in demand for lithium-ion batteries. The metal is one of the most important components of "batteries that power everything from electric vehicles to consumer electronics."We will tell you more in this article, but first have a look at the price action. Note the moves and the volume in the months of April and May. On some days, more than 1.5 million shares were exchanged, which is the highest volume in these months. The market interest is quite high at the moment.SourceBusinessThe company was founded on October 12, 2006 under the laws of British Columbia. The company was founded as Suparna Gold Corp., but it changed its name and became Scientific Metals Corp on May 6, 2016. It is headquartered in Vancouver, Canada. The business objective is the acquisition, exploration, and development of lithium and cobalt assets in North America. According to the latest quarterly release put out on February 10, 2017, the company is still in the exploration stage. Thus, the most important assets at this point in time are the exploration contracts and its projects. The company owns three subsidiaries:

• 1086370 BC Ltd. (100% Ownership Interest)
• Idaho Cobalt Company (100% Ownership Interest)
• Orion Resources NV (80% Ownership Interest)

We found the following assets:

• Deep Valley: Deep Valley Lithium property located in Alberta, which was acquired on June 6, 2016 by paying $15,000 and issuing a total of 4,000,000 common shares of the Company with a fair value of $460,000.
• Paradox Basin: Paradox Basin lithium brine property located in Utah, which was acquired on August 5, 2016 by making cash payment of $52,760 (US$40,000) and issuing a total of 2,750,000 common shares of the Company with a fair value of $261,250.
• Iron Creek: it is a lease agreement with an option to acquire 100% interest in the Iron Creek cobalt property in Lemhi county, Idaho. It was acquired by paying US$45,000 in cash.

Recent Developments and market reactionThe most recent and remarkable news was released on May 30, 2017. The market reacted by pushing up the share price on high volume. Why? According to the news put out, SCTFF had signed a contract for exploration drilling services with Timberline Drilling, a Nevada company, to explore the Iron Creek cobalt project. Have a look:SourceWhat else did the news say? Some estimates about the total tons and the purity were noted: "Tonnage and grade estimates indicate that the Property contains 1,279,000 tons grading 0.59% cobalt". Additionally, it was said that the company plans to conduct geophysical surveys over the known mineralized zones to identify a method that will assist in locating additional drill targets. Wayne Tisdale, CEO, explained in the following words:

“The Company has made excellent progress utilizing the enormously detailed and thorough data provided by our predecessors on the Property. We are excited to more clearly delineate this exciting story and move towards not only quantifying current workings but also examining the potential for considerable expansion. The $5.2M we have raised in the last four months, along with the fact that we are working on private ground, will allow us to move forward quickly. Many thanks to our loyal shareholders.” Source

As mentioned earlier, the name change was announced on May 24, 2017. The company is now focused on the rising demand for cobalt derived from the new massive production of batteries. The CEO said:

"We are excited to announce the rebranding of the Company from Scientific Metals Corp. to US Cobalt Inc. This change highlights the corporate focus we've undertaken at our flagship Iron Creek cobalt project in Idaho, USA. We believe strongly that the demand for home-grown and ethically sourced cobalt will continue its meteoric rise." Source

The market did not react to the name change, as this does not really change the fundamental value of the assets inside the firm. However, we believe that it was important to understand that the company is really well placed for targeting the new high growth cobalt market. On the top of it, investors are funding the company. On May 17, it announced a private placement, under which the company received $1,700,000. SCTFF said that the money will be used for the phase 1 exploration program at its Iron Creek cobalt property in Idaho, and for general working capital purposes.ConclusionSCTFF is moving in the right direction and the market is pushing up the share price accordingly. Iron Creek cobalt property in Lemhi county is the most important project that the company owns. It contains 1,279,000 tons grading 0.59% cobalt. The company knows that investors are really focused on its development as cobalt is needed for the production of batteries. Hence, it decided to invest its resources in this project, change its name, and update the market about the new mine development. In this article, we saw how the market reacted. But, we know that the company will put out more news. To sum up, try to be alert, the price may keep climbing as the company communicates more about its cobalt mine. We will be updating our subscribers as soon as we know more. For the latest updates on SCTFF, sign up below!Disclosure: We have no position in SCTFF and have not been compensated for this article.