Cobalt Power Group announces closing of the acquisition of the Ontario Cobalt block in Cobalt mining camp, Ontario
Cobalt Power Group announces closing of the acquisition of the Ontario
Cobalt block in Cobalt mining camp, Ontario
TSX.V: CPO, Pink Sheets: CBBWF
TORONTO
,
June 7, 2018
/CNW/ - Cobalt Power Group Inc. ("Cobalt Power" or the "Company") (TSX.V: CPO, OTC Pink: CBBWF) is pleased to announce the
Company's closing of the recently acquired Ontario Cobalt block (press release
Feb 13, 2018
) which increases Cobalt Power's landholdings by approximately
25% to over 11,680 ha (28,862 acres). This acquisition positions Cobalt Power as one of the largest landowners in the
Cobalt
and Silver Center camps of
Ontario
.
Cobalt Power Group Inc (CNW Group/Cobalt Power Group Inc)
Highlights:
The Ontario Cobalt Project consists of 14 mineral claims (184 units) covering 2,944 ha (7,275 acres) located in the Cobalt Camp,
Ontario
.
Highly prospective land package along the main structure of the Cobalt Camp.
Property exhibits all geological features for Co-Ag mineralization (diabase dyke, Coleman member sediments, major regional faulting).
The company is fully funded for 2018.
Aggressive exploration program planned for this year.
Geological Setting
Government geological mapping indicates that the claims are underlain entirely by the rocks of the Cobalt Group, including the Coleman Formation, and the
Nipissing
diabase sill. In this area, the Coleman formation consists of a sequence of conglomerates, sandstones, siltstones and argillites, which is the typical
composition of this formation throughout the
Cobalt
camp. The Nipissing diabase is generally a sill intruding the Coleman sediments, but locally can include dykes.
The
Nipissing
mafic rocks generally appear to overlie the Coleman formation, but may locally overlie the Coleman.
Throughout the
Cobalt
camp, the most significant Co-Ag mineralization is commonly associated with the Coleman formation where it is intruded by the
Nipissing
sill, and where quartz-calcite-filled fractures extend into the over- or under-lying Coleman sediments, typically up to
30m
above and below the contacts.
The Montreal River fault is present towards the eastern margin of the claim block. The general model for Co-Ag mineralization in the
Cobalt
camp calls for a
spatial relationship with periodically reactivated regional fault systems rooted in the Archean basement. Heat released by the Nipissing Diabase intrusive
facilitated the mobilization of various metals from the Archean basement, which were then deposited in localized displacements of the Huronian-Archean
unconformity, particularly in the Coleman formation, along these reactivated faults. The Montreal River fault is one of the major regional faults in the area.
Very little historic work has been reported for this area, but with the presence of both critical stratigraphic units in juxtaposition, as well as the presence of a major
regional fault on the property, the geological setting appears to be highly favourable for successful exploration.
Transaction Terms
The purchase will be accomplished by Cobalt Power acquiring all of the issued and outstanding shares in Ontario Cobalt Property Developers Inc. In the exchange
for the issuance of common shares of Cobalt Power to the existing shareholders of Ontario Cobalt Property Developers Inc., the latter will be granted 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 Company.
About Cobalt Power Group Inc.
Cobalt Power 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. Property holdings total approximately 11,680 hectares (28,861 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.
Qualified Person
Chris M. Healey
, P. Geo, VP Exploration and a Director of Cobalt Power Group is the qualified person responsible for the technical content of this release, and
consents to its dissemination.
On behalf of the Board of Directors
"Chris Healey"
_________________
Chris Healey P
. Geo, VP Exploration and a Director of Cobalt Power Group
Cobalt Power Group Inc.
www.cobaltpowergroup.com
We seek safe harbor.
"
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release."
Forward Looking Information
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release. WARNING:
The Company relies on litigation protection for "forward looking" statements. Actual results could differ materially from those described in the news release as a
result of numerous factors, some of which are outside the control of the Company. This news release does not constitute an offer to sell or a solicitation of an
offer to sell any of the securities in
the United States
. The securities have not been and will not be registered under the United States Securities
Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within
the United States
or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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SOURCE
Cobalt Power Group Inc
View original content with multimedia: http://www.newswire.ca/en/releases/archive/June2018/07/c1371.html
%SEDAR: 00029608E
For further information:
please contact Glenda Kelly, Investor Communications at: 403-830-1436. The company's profile may also be viewed on
www.sedar.com.
CO: Cobalt Power Group Inc
CNW 08:00e 07-JUN-18