European Cobalt of Australia buys Timmins-area gold play

European Cobalt (EUC) has signed an exclusive option agreement to acquire an area adjacent to the Edleston Gold Project south of Timmins. This follows an announcement made on June 1 regarding the signing of an exclusive 30-day option with 55 North Mining for the Edleston Gold Project. 

The exclusive option agreement is through a non-refundable option fee of C$100,000 (roughly A$106,000). If European Cobalt chooses, it can purchase 100 per cent of the project for C$650,000 (around A$694,000) and by issuing 100 million shares.

"The Edleston Gold Project is an advanced exploration opportunity with particularly exciting exploration upside potential," Managing Director Rob Jewson said at the time.

The project area covers 64.33 square kilometres and is located within the Cadillac-Larder Fault Zone which has hosted over 75 million ounces of gold. The broader Abitibi Greenstone belt has a total endowment of more than 144 million ounces of gold.

Today's announcement calls for the potential acquisition of an area nearby Edleston. This 45-day option agreement was signed for a non-refundable option fee of C$15,000 (roughly A$16,000).

If European Cobalt chooses, it can proceed to acquire the landholding by issuing five million shares.

"The expanded acreage adjacent to the Edleston Gold Project provides further exposure to the prospective greenstone belt," Managing Director Rob Jewson said.

Through this acquisition, the company's landholding will be expanded to a total of 122 square kilometres.

European Cobalt is currently conducting due diligence with the aim of defining exploration potential and relevant targets.

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