Home > News > Canada Silver Cobalt Enters...

Canada Silver Cobalt Enters into LOI with Power Group Projects to Purchase Cobalt Area Properties

May 3, 2022

Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTCQB: CCWOF) (FSE: 4T9B) (the "Company" or "Canada Silver Cobalt") announces that has entered into a non-binding letter of Intent ("LOI") dated April 20, 2022 with Power Group Projects Corp. ("PGP") which contemplates a transaction whereby PGP would sell its interest in specific Cobalt area properties (the "Property), located in Coleman, Bucke and Lorrain Townships in the Larder Lake Mining Division of Ontario to the Company. The LOI is subject to a 90-day exclusivity and due diligence period.

Under the terms of the LOI, the Company and PGP would enter into a formal agreement whereby the Company would purchase a 100% interest, subject to a 2% NSR in specific PGP Properties and the data related to the Property subject to a payment of $75,000 cash and the issuance of 300,000 shares of Canada Silver to PGP upon closing the transaction. The transaction is subject to TSX Venture Exchange acceptance.

The Properties in question are comprised of 66 claims and 21 mining and surface rights patents totalling approximately 1,000 hectares. Within the patented claims, the historic Smith Cobalt Mine sunk a shaft to a depth of 452 feet in 1930's where they worked 4 veins and produced over 500 pounds cobalt. The property is adjacent to the past-producing Deer Horn Mine where over 2.5 million ounces silver and over 88,000 pounds cobalt, 150,000 pounds copper, and 30,000 pounds nickel were recovered between 1960 and 1965. An additional million ounces of silver was estimated (but unconfirmed) to be produced from 1928 to 1942 (Silver-Cobalt-Calcite Vein Deposits of Ontario, Mineral Deposit Circular 010, Ontario Department of Mines, A.O.Sergiades, 1968). 

"The purpose of this transaction would be to further strengthen the Company's battery metals portfolio and provide an additional key land package in the Cobalt Camp. This region is extremely under-explored and has experienced a long hiatus of mining in the area. Our technical team believes that this location has the necessary geological indicators and historical success to host further cobalt deposits. Using modern technology and knowledge gained from exploring satellite deposits proximal to existing mines, such as Castle East in Gowganda, we believe that this property holds strong potential," stated Gerhard Kiessling, Exploration Manager. 

Tags: Northern Ontario / Deals & Financial / Battery Metals / All Articles