Winmar Resources Ltd (ASX: WFE) has entered into a binding agreement with CBLT Inc. to acquire rights to three blocks of mining claims within the historic high-grade Cobalt-Gowganda silver-cobalt mining district of eastern Ontario, Canada.
The Cobalt-Gowganda silver-cobalt mining district is one of the world’s most prospective and cobalt districts outside the Democratic Republic of Congo and has become the focus of property acquisitions and amalgamations by several cobalt-focused companies.
The three claim blocks being acquired by Winmar cover a total of 2,240 ha and are located peripheral to a cluster of former high-grade silver-cobalt mines at Gowganda, 85km northwest of Cobalt, that operated from 1910 to 1989. Production to the end of 1969 was 60.2 million ounces of silver and 1.3 million pounds of cobalt, although the focus of mining was silver and much cobalt was left unmined.
The agreement between Winmar and CBLT comprises:
1. An initial refundable deposit of A$15,000 paid to CBLT by Winmar prior to undertaking due diligence up to 22 December 2017.
2. Purchase of the Bloom Lake block of claims from CBLT for a consideration of A$50,000 cash plus A$50,000 in shares issued to CBLT at a price of A$0.003.
3. A 12 month option for a consideration of A$20,000 cash to purchase either or both the United Reef block of claims and the Calcite Lake block of claims.
4. Completion of the transaction is expected to occur in early January 2018.
The option to purchase the United Reef and Calcite Reef blocks of claims will vest independently upon the undertaking of at least C$50,000 of exploration activity on each respective block of claims during the 12 month period.
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Winmar intends to complete an initial ground reconnaissance of the Bloom Lake claim block during December using a local independent geologist.
Winmar Managing Director Rod Sainty said the acquisition provides the company with a significant package of prospective territory in a prime, well-established and highly sought- after cobalt district located within a first-world, mining-friendly jurisdiction.
“Winmar intends to progress activity on the Gowganda cobalt project during December using the capable management and field personnel of CBLT. We look forward to bringing shareholders further news soon,” Mr Saintly said.
While the acquisition marks Winmar’s first move into the cobalt sector, the company says further acquisitions are anticipated.