Vancouver’s Cobalt Power Group reported it’s completed a due diligence review of Canadian Cobalt Projects and is proceeding with its acquisition.
Once the acquisition is finalized, Cobalt Power becomes one of the largest landowners in the prolific Cobalt Camp/Silver Centre with a property package of 8,500 hectares running east and south of the town of Cobalt.
Cobalt Power is acquiring 29,950,000 shares of Canadian Cobalt, plus a 1.5 per cent net smelter return royalty.
Canadian Cobalt will become a subsidiary of Cobalt Power Group.
“The acquisition of the Canadian Cobalt properties presents a rare opportunity to increase our land holdings in the Silver Centre region, an area with a robust mining history and known high-grade silver/cobalt mineralization,” said company president Andreas Rompel in a news release.
The company (formerly known as Global Copper), which is in the second phase of an exploration program on its Smith Cobalt property, has been steadily acquiring land since last fall in South Lorrain, Lorrain, Coleman and Bucke Townships.
There are several historic mining operations on the properties of the historic Cobalt camp, including the Smith Cobalt mine shaft and its underground workings.
The properties are close to the former Keeley-Frontier Mines that are part of the First Cobalt-Cobalt One land package. In late August, Cobalt Power brought Hochschild Mining Holdings as a strategic partner.
The Peru-based mining house, which trades on the London Stock Exchange, invested $500,000 in Cobalt Power for exploration and additional property acquisition purposes.