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Cobalt Power closes acquisition of Canadian Cobalt project

Mining News - Published on Thu, 07 Dec 2017

Image Source: CNW
Cobalt Power Group Inc announced that the TSX Venture Exchange has accepted for filing a share purchase agreement dated Oct. 23, 2017, between Cobalt Power Group Inc., Canadian Cobalt Projects Inc. (the vendor) and all of the shareholders of Canadian Cobalt. Cobalt Power has agreed to purchase all of the issued and outstanding common shares in the capital of Canadian Cobalt, which is the registered holder of 33 mineral claims located in the South Lorrain Township, Ontario. Consideration is 29.95 million common shares of the company. Under the agreement, a 1.5-per-cent net smelter royalty will be granted, on a pro rata basis, to the shareholders of Canadian Cobalt.

1. Acquisition is comprised of approximately 7,500 ha of strategically located mining claims in the Silver Center area of the Cobalt Camp, Ontario.

2. With the addition of this land package, Cobalt Power becomes one of the largest landowners in the prolific Cobalt and Silver Center camps, holding over 8,700 ha. First Cobalt, Cobaltech, and Cobalt One announced a merger earlier this year resulting in a land package slightly larger than Cobalt Power's at approximately 10,000 ha.

3. The Canadian Cobalt Project land package is contiguous with, or within close proximity to, the recently announced First Cobalt/Cobalt One lands and has a similar geological setting.

4. The claim group includes the historic Silver Eagle Mine and lies near several past producing mines, including the Keely and Frontier (held by First Cobalt), in the South Lorrain Township, Ontario. The Silver Eagle Mine (which operated around 1918) produced 8,000 ounces of silver from a 6-meter section of mine workings that crossed the property from the adjacent Wettlaufer Mine (cobalt was not recovered, as was typical for that era).

5. There are several known cobalt occurrences found on the land package - all reported in the Ontario Mineral Deposit Inventory files:

a). Labine-McMahon showing - samples collected from a quartz-carbonate vein adjacent to an aplite dike contain cobaltite, arsenopyrite and bismuthinite. An assessment of the heavy material after a partial separation from the gangue returned: 32.54% As, 4.85% Fe, 21.09% Co, 1.18% Ni, 6.26% Bi and 0.09% Zn. A sample of wall rock adjacent to a ¾" wide quartz-carbonate vein assayed 1.10% Co and 0.21% Ni. The sample was collected in 1956 and assayed by the Cobalt Resident Geologist.

b). Friday Creek showing - government reports show "a 20cm quartz-calcite veins with 17 g/t Ag, in Nipissing diabase."

8. Three Swedish tenement licence applications are included in the Canadian Cobalt Projects property package. Application decision is expected from the Swedish Mining Inspectorate shortly.

Cobalt Power Group is expected to announce a work program aimed at the Canadian Cobalt Project properties in early 2018. The Company recently completed a Phase 2 drill program at its Smith Cobalt project and currently awaits results. Phase 1 drilling confirmed and enlarged the strike extent of the known mineralization around the historical Smith Cobalt shaft. Results were consistent with historical grades and widths found throughout the Cobalt Camp, Ontario.

Dr Andreas Rompel President & CEO commented that "We can now expand our exploration campaign into the Silver Centre region of the Cobalt Camp." He added that "This opportunity for expansion of exploration, along with the credibility and expertise provided by our strategic partner, Hochschild Mining, and the recent investment by Sprott Canada (both becoming significant shareholders with a combined investment of over CAD 1.13 million), make Cobalt Power one of the premier exploration and development companies in the Cobalt Camp."

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Posted By : Rabi Wangkhem on Thu, 07 Dec 2017
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