Cobalt Power Group has sealed the deal to acquire Ontario Cobalt Property Developers and has gobbled up a sizeable chunk of prospective ground in northeastern Ontario.
The share purchase agreement was announced last February to pick up the privately owned firm and 2,944 hectares (7,275 acres) of property in Gillies Limit Township.
With a total land package of 11,680 hectares (28,862 acres), Cobalt Power holdings have grown by 25 per cent to become one of the largest landowners in the Cobalt and Silver Centre area.
The claims are next to Cobalt Power’s existing claims and reside on the main geological structure of the camp.
Under the terms of the agreement, Cobalt Power is acquiring all of the issued and outstanding shares in Ontario Cobalt Property Developers.
In the exchange of common shares of Cobalt Power to the shareholders of Ontario Cobalt Property Developers, the latter get a 2.5 per cent net smelter royalty, of which 1.5 per cent may be purchased by Cobalt Power at any time on or before the seventh anniversary of the closing date in consideration of a $1 million cash payment.
Cobalt Power said it is “fully funded” for an extensive exploration program, which began June 4 and will run until the end of October. It includes a helicopter geophysical survey on all the properties.
Of particular focus are the major claim blocks of the Smith Cobalt, Montreal River West, and the recently acquired Ontario Cobalt block and the former Silver Eagle Mine.
“We are excited to build on the geological work and drilling performed last year,” said Cobalt Power president-CEO Greig Hutton in a June 5 news release.
“The company has further solidified its position in the Cobalt Camp with the addition of the Ontario Cobalt properties and is planning an aggressive exploration program to develop targets for continued drilling. The goal of the company is to further develop our assets with focused exploration in order to make the company a clear choice for investors looking to participate in the increasing market demand for cobalt.”
