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