Under its revised terms, Pala has increased the cash payment to C$4 per share, up from C$3.57, adding US$23 million (C$30 million) to the deal that created Nickel 28 Capital, which is designed to retain Cobalt 27's existing nickel-focused assets.

The amended deal therefore gives Cobalt 27 shareholders C$5.92 per share, comprising cash and one share of Nickel 28 with an implied value of C$1.92 each. The deal is now valued at $382.79 million (C$506.2 million).

Pala will also repay Cobalt 27's net debt, leaving Nickel 28 with no corporate debt and funding of $5 million cash upon closing.

"We are pleased to provide these significantly improved transaction terms to Cobalt 27 shareholders on a best and final basis. We believe that these terms are responsive to shareholder feedback and fully value the company," Gill said.

Cobalt 27 said its board continued to support the Pala offer and shareholders were urged to vote in favour of the transaction during a special meeting now scheduled for October 11.

Shareholder Anson Funds had earlier opposed the deal, stating it ‘undervalued' the company.

Cobalt 27 shares (TSXV:KBLT) closed 4% higher on Tuesday at C$4.16 on heavy trading volumes. The company has a C$355 million market capitalisation.