Cobalt Power Group Announces Closing of the Acquisition of Western Cobalt Corp.
Cobalt Power Group Announces Closing of the Acquisition of
Western Cobalt Corp.
TSX.V: CPO, Pink Sheets: CBBWF
TORONTO
,
June 15, 2018
/CNW/ - Cobalt Power Group Inc. ("Cobalt Power" or the "Company") (TSX V: CPO) (OTC Pink: CBBWF) is
pleased to announce closing of the acquisition of Western Cobalt Corp., ("Western Cobalt") a privately held mineral exploration company
that holds 9 strategically located mineral claims in the eastern Athabasca basin of Saskatchewan,
Canada
. As earlier announced, 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").
Highlights
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.Sm in drill hole WBC-001, and 0. 73% Co and 0.36% Ni over 20.Sm 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 lsoEnergy 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 it 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.
Geological Setting
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.
Thedominant 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.
Transaction Terms
Cobalt Power has now finalized this transaction by 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
. 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 fifth anniversary of the closing date, in consideration of a
$1,500,000
cash payment.
Chris M. Healey
, P. Geo, Vice President 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.
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.
We seek safe harbor.
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SOURCE
Cobalt Power Group Inc
View original content: http://www.newswire.ca/en/releases/archive/June2018/15/c8231.html
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For further information:
Glenda Kelly, Investor Communications at: 403-830-1436
CO: Cobalt Power Group Inc
CNW 18:33e 15-JUN-18