Canada Cobalt Launches "Re-2OX Unlocks", Signs Deal For First Revenue Stream
Canada Cobalt Launches "Re-2OX
Unlocks", Signs Deal For First Revenue
Stream
COQUITLAM, BC, May 7, 2019 /CNW/ - Canada Cobalt Works Inc.
(TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the "Company" or
"Canada Cobalt") is pleased to announce its first revenue stream from
Re-2OX, the Company's proprietary and environmentally friendly
hydrometallurgical process that bypasses a traditional smelter for
efficient extraction of cobalt, precious metals and base metals.
In 2018, led by adviser Dr. Ron Molnar and SGS Lakefield, Canada
Cobalt became the first company in Canada's Cobalt heartland during
the electric vehicle revolution to produce a battery grade Cobalt
sulphate test product from its own feed (Castle mine). Much broader
plans for Re-2OX are now beginning to roll out, applicable to the
Castle mine and beyond, starting with the Company's "Re-2OX
Unlocks" model aimed at using the proprietary Re-2OX process to
help public and private companies unlock asset value through leading
edge metallurgical and metal recovery solutions offered by Re-2OX.
Canada Cobalt, which has initiated the patent process for Re-2OX
(refer to April 30, 2019, news release), fully protects its intellectual Re-
2OX property in the "Re-2OX Unlocks" program.
Marc Bamber, Canada Cobalt director, commented: "CCW's 'Re-2OX
Unlocks' is a powerful merging of technology with the 2020's
resource sector and the global trend toward mass electrification. It's
also an excellent example of how Re-2OX is a very adaptable
process, technically, and can also be used in multiple ways to
leverage value for shareholders. This first agreement with Global
Energy Metals puts us on a big runway of opportunity while it
heightens potential for GEMC at its promising cobalt-nickel-copper
battery metal properties in Nevada.
"A very active second quarter is unfolding for Canada Cobalt," Bamber
continued. "Re-2OX is one of four key pillars of a very focused
strategy that will also be powered by our unique underground
access/Phase 2 drilling at the Castle mine, a simple but effective
tailings program, and discovery potential at Castle East."
Canada Cobalt Signs Agreement with Global Energy Metals
Canada Cobalt and Global Energy Metals (TSXV: GEMC) have
entered into a non-binding Memorandum of Understanding (MOU) that
allows for cobalt-nickel-copper-bearing mineralized material from the
GEMC's Lovelock mine and Treasure Box Property to be put through
the Re-2OX Process in order to confirm efficient battery metal
extraction and create a battery grade test product.
Canada Cobalt will supervise the program, protecting its intellectual
property, and will be paid a $200,000 upfront first-stage Re-2OX fee,
with costs related to sampling and lab work to be borne by GEMC
(maximum $100,000). The companies may broaden their relationship.
Strategic Investment
Canada Cobalt will take an immediate equity position in GEMC,
subscribing for 2,000,000 units at 7.5 cents per unit for a total
investment of $150,000. Each unit will consist of one common share
and one transferable common share purchase warrant. Each warrant
will entitle Canada Cobalt to acquire one common share of GEMC at a
price of 10 cents per share for a period of 36 months from the closing
date, subject to an acceleration clause. The private placement is
subject to the approval of the TSX Venture Exchange and securities
will be subject to a four-month hold period from the time of closing.
CEO's Comment on Deal
Frank Basa, President and CEO of Canada Cobalt, stated: "We are
pleased enter into a strategic relationship with the Global Energy
Metals team. We have a shared objective of advancing the
metallurgical understanding of GEMC's promising Nevada based
battery metal assets using Re-2OX. The very adaptable Re-2OX
Process has shown very high recovery rates for multiple metals and
the ability to create a compound suitable for end-use in battery
production."
Mitchell Smith, CEO of Global Energy Metals, stated: "While the future
of EV's and other green technologies is promising, North America is
highly import-reliant for those critical metals that are fueling the road to
electrification. Partnering with Canada Cobalt Works and utilizing their
Re-2OX Process is a crucial step in unlocking the potential Lovelock
and Treasure Box provide for shareholder exposure to strategically
important U.S-based battery mineral assets. Significantly, Re-2OX has
allowed Canada Cobalt to become the first company in Canada's
cobalt heartland to produce a battery grade cobalt sulphate test
product with nickel-manganese-cobalt (NMC) formulations in their
pipeline."
Qualified Person
The technical information in this news release was prepared under the
supervision of Frank J. Basa, P.Eng., Canada Cobalt's President and
Chief Executive Officer, who is a member of Professional Engineers
Ontario and a qualified person in accordance with National Instrument
43-101.
About Canada Cobalt Works Inc.
Canada Cobalt is focused on immediate and longer-term value drivers
at its past producing Castle mine and adjoining land package in the
historic Northern Ontario Silver-Cobalt district, Canada's cobalt
heartland since the start of the electric vehicle revolution. The Canada
Cobalt "advantage" includes underground access at Castle, an
innovative tailings program with a plan to recover silver, gold and
cobalt, a recently installed pilot plant to produce gravity concentrates
on site, a proprietary hydrometallurgical process known as Re-2OX,
and exciting exploration discovery potential at Castle East.
"Frank J. Basa"
Frank J. Basa, P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release. This news release may contain forward-looking statements
including but not limited to comments regarding the timing and content
of upcoming work programs, geological interpretations, receipt of
property titles, potential mineral recovery processes, etc. Forward-
looking statements address future events and conditions and
therefore, involve inherent risks and uncertainties. Actual results may
differ materially from those currently anticipated in such statements.
SOURCE Canada Cobalt Works Inc.
View original content:
http://www.newswire.ca/en/releases/archive/May2019/07/c5608.html
%SEDAR: 00022378E
For further information: Frank J. Basa, P.Eng., President and CEO,
1-819-797-4144, or Wayne Cheveldayoff, Corporate Communications,
[email protected], 1-416-710-2410
CO: Canada Cobalt Works Inc.
CNW 08:00e 07-MAY-19