April 5, 2018 (Source) — CBLT Inc. (TSXV: CBLT) (“CBLT“) announces that it has entered into a binding agreement (the “Agreement“) with Krakatoa Resources Limited (“Krakatoa”) to sell two claims (the “Claims“) in the historic Cobalt-Gowganda silver-cobalt mining district of Ontario.
Krakatoa is an Australian mining company listed on the Australian Stock Exchange under the symbol “KTA”, led by what CBLT believes to be a quality management team. Krakatoa’s press release announcing this transaction can be found at https://www.asx.com.au/asx/share-price-research/company/KTA .
The Claims are located peripheral to a cluster of former silver-cobalt mines at Gowganda, 85 kilometres northwest of the town of Cobalt, which mines operated from 1910 to 1989. Production from this region to the end of 1969 was 60.1 million ounces of silver and 1.4 million pounds of cobalt.
Cobalt is an mandatory ingredient in the cathode of lithium-ion batteries, without which electrification of the motor vehicle industry cannot take place. Cobalt is in a global deficit position and in CBLT’s view requires a Canadian ethical supply chain to alleviate the human suffering underway in the Congo. From its low of USD$21,750 per tonne in February, 2016, cobalt has recently traded as high as $95,000 per tonne.
Under the Agreement:
- Krakatoa will purchase the Claims (covering 41 mining units) for consideration of AUD $50,000 cash plus 2,500,000 (two million five hundred thousand) Krakatoa common shares issued to CBLT at a price of AUD $0.035, for total initial consideration of AUD $137,500;
- Krakatoa will also issue to CBLT an option (“Option“) exercisable in whole or in parts to purchase 2,500,000 (two million five hundred thousand) Krakatoa common shares at an exercise price of AUD $0.10 (ten cents); and
- Closing is expected to take place as soon as reasonably possible in April, 2018.
The Agreement is subject to terms and conditions reasonably normal for a transaction of this nature. CBLT does not require regulatory or shareholder approval for the Agreement. CBLT will pay from its treasury to an arm’s length person a finder’s fee of 60,000 shares, which issuance does require regulatory approval.
Krakatoa has advised CBLT that it intends to complete a reconnaissance of the Claims during 2018. CBLT intends to provide whatever reasonable co-operation it can to Krakatoa to accelerate the exploration of the Claims. CBLT has undertaken to manage, under Krakatoa’s direction and if so requested, the field programmes on the Claims at cost plus a 10% management fee payable to CBLT.
“Our early entrance in the Gowganda/Cobalt Camp is now creating tangible value,” said Peter M. Clausi, CBLT’s CEO. “This transaction and the earlier one with Winmar Resources are in effect dilution-free financings for CBLT. We are eager to get in the field and help Krakatoa work these assets. The world needs Canada’s cobalt.”
CBLT intends to carry out surface work at its main gold /cobalt asset in Sudbury, Ontario, with a view to carrying out a drill program in the latter part of 2018. The drone aerial survey contemplated for this year at Chilton Cobalt in Quebec cannot be flown until the local weather is more suitable.
CBLT is a Canadian mineral exploration company with a proven leadership team, targeting cobalt in reliable mining jurisdictions. CBLT continues to be a project generator and an efficient steward of its shareholders’ capital.
Forward Looking Statements
This news release contains certain statements that constitute forward-looking statements as they relate to the Company and its management. Forward-looking statements are not historical facts but represent management’s current expectation of future events, and can be identified by words such as “believe”, “expects”, “will”, “intends”, “plans”, “projects”, “anticipates”, “estimates”, “continues” and similar expressions. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.
By their nature, forward-looking statements include assumptions and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this new release, the Company will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities laws, the Company assumes no obligation to update or revise any forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: reliance on key personnel; risks of future legal proceedings; income tax matters; availability and terms of financing; distribution of securities; effect of market interest rates on price of securities, and potential dilution.
About CBLT Inc.
On Behalf of the Board of Directors
“Peter M. Clausi”
Peter M. Clausi
CEO and Director
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.