Canada Silver Cobalt Works Inc announced that it has signed a non-binding letter of intent (LOI) to purchase a 24-unit multicell greenfield lithium property, totalling 4.5 square kilometers, in northern Ontario’s Cochrane District.
The company said the property is contiguous to Power Metal’s Case Lake lithium property, about five kilometers northwest of its West Joe Dyke and Main Dyke areas, which recently reported drill results that included 1.86% lithium over 19.00 metres.
Canada Silver Cobalt noted that the property is sandwiched between several dome-shaped laccolith igneous intrusions identified and owned by Power Metals, which typically host the pegmatitic dykes that contain spodumene that is a lithium aluminium inosilicate, otherwise known as a lithium ore mineral.
READ: Canada Silver Cobalt Works reports encouraging results from its Castle East drill program
It added that the property has outcropping pegmatites on surface.
Canada Silver Cobalt said the non-binding LOI sets forth the terms and conditions that shall form the basis of an option agreement to acquire an undivided 100% interest in the property in consideration for:
- A cash payment of C$5,000 and issuance of 50,000 Canada Silver Cobalt shares to be paid to the option or, upon TSX Venture Exchange approval of the definitive agreement;
- Canada Silver Cobalt incurring exploration expenditures on the property in the amount C$10,000 on or before the one-year anniversary of the definitive agreement, to earn an undivided 50% interest in the property;
- Cash payment of C$10,000 and issuance of 100,000 shares of the company to the option or by the one-year anniversary of the definitive agreement date;
- Canada Silver Cobalt incurs exploration expenditures in the amount C$20,000 on or before the second-year anniversary of the definitive agreement, to earn an undivided 100% interest in the property; and
- Upon exercise of the option by Canada Silver Cobalt, the company grants to the option or a 2% net smelter return (NSR) on the property and on claims within a two-kilometre area of influence from the center of the optioned claim, with the company retaining a C$500,000 buyback on 1% of the NSR.
Canada Silver Cobalt is strategically positioned to become a Canadian leader in the silver-cobalt space. Its flagship Castle Mine and Castle property near Gowganda in northern Ontario features strong exploration upside for silver, cobalt, nickel, gold, and copper.
Contact Sean at sean@proactiveinvestors.com