Cobalt Blue Holdings (ASX:COB) repaid AU$2 million of the AU$3 million it owes to American Rare Earths (ASX:ARR) and accrued interest of AU$180,000 up to Jan. 17, according to a Monday filing with the Australian bourse.

American Rare Earths has also been issued 335,882 fully paid ordinary shares in Cobalt Blue. The remaining balance of AU$1 million, plus interest, is due Oct. 1.

Cobalt Blue's shares were down past 4% in recent trade.