CobalTech has acquired more property in the Cobalt mining camp, growing its portfolio to 264 hectares, including nine past-producing mines.
The company, a fledgling cobalt miner based out of Vancouver, acquired the Duncan Kerr property from Toronto’s Trio Resources on Nov. 23.
The new property is adjacent to Duncan Kerr, and formerly hosted the Drummond, Conisil, Hargraves, Belmont, Silver Cross, Campbell-Crowford, Juno, Airgiod and Silver Bird mines that had an estimated total output of 4.55 million ounces of silver and 253,000 pounds of cobalt, while all at production depths never exceeding 186 metres from surface.
Conisil is the standout mine in the package; according to CobalTech, it is “believed to have been one of the last mines to be nearing production in Cobalt, before the price of silver collapsed in the mid-’80s and the camp fell dormant.”
The mine was formerly owned by Agnico Eagle, and “its 1994 closure plan mentioned cobalt mineralization of 78,966 tons at 0.17 per cent cobalt for a total of 270,462 pounds of cobalt as well as 500,000 ounces of silver,” according to the company.
“It is exciting to be able to acquire such quality assets with so much potential in what is considered a mature mining camp,” said Antoine Fournier, president and CEO at CobalTech, in a release.
“The acquisition was made to build the foundation for CobalTech’s plan to significantly expand its presence in the cobalt sector. The company now has the necessary core properties to be able to implement its business strategy.”
Under the agreement, CobalTech will pay the seller, numbered company 9920455 Canada Inc., $250,000 and issue five million common shares of the company.
Cobalt is commonly used in the production of high-energy lithium-ion batteries used for electric cars, mobile phones and digital devices.