Cobalt Power Group To Acquire Western Cobalt Corp.
TSX.V: CPO, Pink Sheets: CBBWF
TORONTO, April 30, 2018 /CNW/ – Cobalt Power Group Inc. (“Cobalt Power” or the “Company”) (TSX.V: CPO, OTC Pink: CBBWF) is pleased to announce the acquisition of Western Cobalt Corp., (“Western Cobalt”) a privately held mineral exploration company that holds nine strategically located mineral claims in the eastern Athabasca basin of Saskatchewan, Canada.
The Western Cobalt properties comprise approximately 20,130 acres (8,146 hectares) of highly prospective geology. The claims are contiguous with UEX Corporation’s (“UEX”) West Bear Cobalt-Nickel Project (“West Bear Co-Ni”).
• UEX recently announced very high grade cobalt-nickel results over substantial widths on their West Bear Co-Ni project, including 2.0% Co and 1.26% Ni over 10.5m in drill hole WBC-001, and 0.73% Co and 0.36% Ni over 20.5m in drill hole WBC-005 (UEX news release of April 9, 2018).
• Western Cobalt’s properties are contiguous to claims held by UEX, ALX Uranium Corp., Denison Mines Corp., and IsoEnergy Ltd.
• Geological setting of the Western Cobalt properties exhibits the critical features for both Cobalt-Nickel and Uranium mineralization found in the region, including proximity to the eastern margin of the Athabasca sandstone where the geological setting unconformably overlies metasedimentary formations of the Wollaston Domain.
• The Company is fully funded for the 2018 exploration season and plans are underway for an aggressive exploration program on its new Western Cobalt properties.
“This cobalt-nickel project in the Athabasca basin of Saskatchewan, and the exploration of cobalt in the Ontario Cobalt Region, will increase Cobalt Power’s property to 19,826.80 hectares,” stated Chris Healey, P. Geo VP of Exploration and Director.
The Western Cobalt properties are located at the eastern margin of the Athabasca basin of northern Saskatchewan, approximately 40 km southwest of Cameco’s Rabbit Lake mill. There are two claim blocks, a western block, WC West, and an eastern block, WC East.
The WC West property is covered by 25 to 50 metres of Athabasca sandstone which overlies Wollaston Domain basement rocks which include graphitic metapelites and meta-arkosic gneisses.
The WC East property covers favourable Wollaston Domain basement rocks consisting primarily of Aphebian-age metasedimentary gneissic packages including pelitic to semi-pelitic gneisses and psammitic meta-arkosic gneisses.
The structural setting in both the East and West properties is complex which is considered to be highly prospective for Co-Ni mineralization. The dominant fabric is northeast trending and parallel to stratigraphy. Major faults in the region include northeast trending reverse faults and north trending Tabbernor-type sinistral faults, both of which control the distribution of uranium deposits in the district. The West Bear Co-Ni project lies along one of these northeast trending secondary faults.
The purchase will be accomplished by Cobalt Power acquiring all of the issued and outstanding shares in Western Cobalt in exchange for the issuance, pro-rata, of 12,200,000 common shares of Cobalt Power to the existing shareholders of Western Cobalt. At closing, the shareholders of Western Cobalt will receive the benefit of a 2.5 % net smelter royalty, of which 1.5 % may be purchased by Cobalt Power at any time on or before the seventh anniversary of the closing date, in consideration of a $1,000,000 cash payment. This is an arm’s length transaction and the transaction will not create any new insiders of the corporation.
The Board of Directors has approved a resolution to grant 10 million incentive stock options to officers, directors and consultants to the company. The options will be exercisable at $0.19 per share for a term of 2 years from the date of issue. This is subject to approval of TSX-Venture Exchange
Chris M. Healey, P. Geo, Vice President Exploration and a Director of Cobalt Power, is the qualified person responsible for the technical content of this release, and consents to its dissemination.
About Cobalt Power Group Inc.
Cobalt Power Group Inc. is a publicly traded Canadian exploration company listed on the TSX-Venture Exchange and U.S. Pink Sheets (TSX-V: CPO, OTC Pink: CBBWF) focused on cobalt exploration and development. The Company has made a series of strategic property acquisitions over the past two years seeking cobalt mineralization near Cobalt, Ontario, a region with a long history of silver and associated cobalt production, and now in the Athabasca basin of Saskatchewan. Property holdings total approximately 19,826 hectares (48,991 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.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
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SOURCE Cobalt Power Group Inc