Canada Silver Cobalt Works Inc announced it has struck an agreement with Power Group Projects Corp to acquire cobalt properties in the Larder Lake mining division of Ontario.
The two companies have signed a non-binding letter of intent whereby Power Group (PGP) will sell its interest in specific properties, comprising 66 claims and 21 mining and surface rights patents totalling approximately 1,000 hectares, located in Coleman, Bucks and Lorrain townships in Ontario.
The properties include the historic Smith cobalt mine that produced over 500 pounds of cobalt, which 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.
READ: Canada Silver Cobalt Works revises purchase price of industrial-zoned property in Ontario
Under the terms of the letter of intent, Canada Silver Cobalt would purchase a 100% interest, subject to a 2% NSR in specific PGP properties for C$75,000 cash and 300,000 shares of Canada Silver.
The purpose of the transaction is to strengthen Canada Silver Cobalt’s battery metals portfolio and provide an additional key land package in the Cobalt Camp, according to exploration manager Gerhard Kiessling.
“This region is extremely under-explored and has experienced a long hiatus of mining in the area,” Kissling said in a statement.
“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."
British Columbia-based Canada Silver Cobalt Works is advancing its flagship asset, the past-producing Castle mine in Ontario. The company also owns 14 battery metals properties in northern Quebec and the prospective 1,000-hectare Eby-Otto gold property close to Agnico Eagle's high-grade Macassa Mine near Kirkland Lake, Ontario.
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