Cobalt Power Group to acquire an additional 7,400 hectares in the Cobalt Mining
Cobalt Power Group to acquire an additional 7,400 hectares in the Cobalt Mining
Camp, Ontario
TSX.V: CPO, Pink Sheets: CBBWF
VANCOUVER, July 27, 2017 /CNW/ - Cobalt Power Group Inc. (the "Company") (TSX.V: CPO, OTC
Pink: CBBWF) is pleased to announce signing a non-binding letter of intent ("LOI") to acquire four
separate blocks of mineral claims (the "Properties") located in the South Lorrain and Lorrain Townships,
Ontario, encompassing approximately 7,400 ha of prospective mineral lands. The Properties are currently
owned or leased by Canadian Cobalt Projects Inc. ("Canadian Cobalt"), a privately held mineral
exploration company.
Highlights
Acquisition is comprised of approximately 7,400 ha of strategically located mining claims in the Silver
Center area of the Cobalt Camp, Ontario.
Cobalt Power will become one of the largest landowners in the prolific Cobalt Camp/Silver Center
with the addition of this land package.
Claim group is in close proximity to several historic mines, including the former producing Keely and
Frontier Mines in South Lorrain Township, Ontario, as well as the recently announced First
Cobalt/Cobalt One lands.
Presence of historical showings on the properties, combined with the favourable geological setting,
enhances the geological potential for the properties.
Combined land holdings for Cobalt Power Group are now approximately 10,000 ha in the Cobalt
Camp, Ontario.
"With the addition of this land package, our company will have 100% ownership in the mineral rights for
one of the largest land packages in the Cobalt Camp," comments Dr. Andreas Rompel, President & CEO.
"Expanding our contiguous parcels into the core of the historic Silver Centre bodes well for continued
exploration, increases our opportunity for discovery and turns us into one of the dominant players in the
region."
Proposed Transaction
It is contemplated that the acquisition of the Properties will be accomplished by Cobalt Power Group
acquiring all of the issued and outstanding shares of Canadian Cobalt in exchange for the issuance, pro-
rata of 35,000,000 common shares of Cobalt Power to the existing shareholders of Canadian Cobalt and
that at closing, the shareholders of Canadian Cobalt will receive the benefit of a 1.5% net smelter returns
royalty, of which 75% may be purchased at any time in consideration for a cash payment of
(CDN)$1,000,000. Following completion of the transaction, Canadian Cobalt would become a wholly
owned subsidiary of Cobalt Power Group.
Cobalt Power will now initiate a 30-day due diligence period wherein it will conduct a full due diligence
investigation. The definitive agreement and the closing of the acquisition remains subject to a number of
conditions, including approval of the TSX Venture Exchange, as well as such other conditions as are
customary in transactions of this nature.
Cobalt Camp Properties
This large land package comprises 44 strategically situated dispositions (43 unpatented mining claims
and 1 mining lease on patented land). The properties are generally underlain by Huronian Cobalt Group
metasediments with abundant occurrences of the Nipissing diabase sill/dyke. Both the upper and lower
contacts of the sill occur on the property. The Cobalt Group metasediments include quartzites and
arkoses of the Lorrain Formation, as well as significant outcrops of siltstones and greywackes of the
Coleman Formation, which are locally in contact with the base of the sill.
There are several known cobalt occurrences found on the land package - all reported in the Ontario
Mineral Deposit Inventory files:
Labine-McMahon showing - samples collected from a quartz-carbonate vein adjacent to an aplite
dike contain cobaltite, arsenopyrite and bismuthinite. An assessment of the heavy material after a
partial separation from the gangue returned: 32.54% As, 4.85% Fe, 21.09% Co, 1.18% Ni, 6.26% Bi
and 0.09% Zn. A sample of wall rock adjacent to a ¾" wide quartz-carbonate vein assayed 1.10%
Co and 0.21% Ni. Sample was collected in 1956 and assayed by the Cobalt Resident Geologist.
Friday Creek showing - government reports show "a 20cm quartz-calcite veins with 17 g/t Ag, in
Nipissing diabase."
The mining lease included in the package is the Silver Eagle property. Located on this property, the
Silver Eagle mine (which operated around 1918) produced 8,000 ounces of silver from a 6-meter section
of mine workings that crossed the property from the adjacent Wettlaufer Mine (cobalt was not recovered,
as was typical for that era). Geological mapping shows the claim to be underlain by the Nipissing diabase
sill in contact with "undifferentiated" intermediate to mafic volcanics, basalts and pillow lavas. This is the
classic setting for Cobalt Camp mineralization.
Swedish Properties
Cobalt Power Group will become entitled to negotiations currently in progress with representatives of
Canadian Cobalt Properties regarding acquiring several exploration licenses in historic cobalt mining
areas of southern Sweden.
Additionally, the previously announced drill program at Smith Cobalt has been completed, with a total of
1897 m drilled in nine drill holes. Core logging and sampling is close to completion. Assays are pending
and results will be released once they have been received and reviewed by the company.
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 year, seeking cobalt
mineralization near Cobalt, Ontario - a region with a long history of silver and associated cobalt
production. Property holdings total 863.6 hectares (2134 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.
About the Smith Cobalt Project
The Smith Cobalt project is underlain by a sequence of Archaean volcanics which are uncomformably
overlain by Huronian sediments. These formations have been intruded by the Proterozoic-age Nipissing
diabase sill. Faulting, on both a regional and local scale, has been found by surface mapping and in drill
cores. Polymetallic veining, and especially pinkish-white carbonate veins, has also been reported. Thus,
all the necessary geological components of accepted mineralization models for cobalt-silver have been
identified on the properties.
Chris M. Healey, P. Geo, V.P. 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
"Andreas Rompel"
_________________
Dr. Andreas Rompel, President and CEO
Cobalt Power Group Inc.
www.cobaltpowergroup.com
We seek safe harbor.
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.
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.
SOURCE Cobalt Power Group Inc
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For further information: please contact Daniel Caamano, V.P. Corporate Communications or Judy
A. McCall, Corporate Secretary at: 604.620.7737. The company's profile may also be viewed on
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CO: Cobalt Power Group Inc
CNW 06:00e 27-JUL-17