British firm Hochschild Mining Holdings Inc. is investing US$500,000 into Cobalt Power Group Inc.
Proceeds from the purchase of shares will help Cobalt Power Group add to its properties in the Cobalt, Ont. mining camp.
In addition to shares in the company, Hochschild will earn a spot on the board of directors and the right to joint venture on one of Cobalt Power’s properties. It will also have the ability to top up its percentage interest in Cobalt Power.
Hochschild Mining Holdings Inc. is a subsidiary of Hochschild Mining plc, a senior miner which has four active underground mining operations, in Peru and Argentina.
"We are delighted to become associated with a reputable mining house like Hochschild and welcome them as our strategic partner in Cobalt, Ontario,” president-CEO Dr. Andreas Rompel said in an Aug. 21 news release.
"Hochschild's extensive experience in mining and treatment of steeply dipping, narrow epithermal veins will be of paramount importance in the development of the Smith Cobalt project and adjoining lands."
Cobalt Power Inc. is one of several companies exploring the former silver camp for new sources of cobalt, which is used in the production of lithium-ion batteries used for electric cars, mobile phones and digital devices.
Cobalt Power currently has property holdings in the Cobalt area totalling 863.6 hectares (2,134 acres) in contiguous and strategic claim blocks. There are several historic mining operations on the properties that are potentially accessible, including the Smith Cobalt shaft and its underground workings.