A Western Australian lithium explorer is spinning off a subsidiary to land prospective property in Ontario.
Through its iCobalt spinff company, MetalsTech announced it has signed a binding option agreement to acquire the former Rusty Lake cobalt and silver mine, 15 kilometres south of Gowganda.
The property vendors are New Found Gold.
The 816-hectare property was in production between 1910-13, 1936-1938 and 1964-68.
“We are excited to have secured this opportunity to acquire a past-producing mine with excellent high-grade cobalt, nickel and silver potential,” said Gino D’Anna, MetalsTech executive director in a Nov. 23 news release.
“The area is general is a hotspot for recent cobalt focused exploration and consolidation and we are pleased to be able to expand our exposure. We are eagerly awaiting the results of our due diligence and will update stakeholders when this is complete.”
The property is located 70 kilometres from the company’s other high-grade cobalt project in northeastern Ontario.
The Perth-based company acquired its Bay Lake cobalt project last April. The 672-hectare property is one kilometre north of the town of Latchford and just west of Highway 11. That project contains mine shafts with exposed underground cobalt veins.
Surveying, sampling and trenching began last June to identify drill targets.
The company said the project has the potential to expand significantly to more than 2,700 hectares through acquisition.
MetalsTech expects its iCobalt subsidiary will be listed on the Australian Stock Exchange in 2018 with dedicated funding and management for its cobalt assets in Ontario.