TSX.V: CPO, Pink Sheets: CBBWF
TORONTO, April 30, 2018
/CNW/ - Cobalt Power Group Inc. ("Cobalt Power" or the
"Company") (TSX.V: CPO, OTC Pink: CBBWF) is pleased to announce the
acquisition of Western Cobalt Corp., ("Western Cobalt") a privately
held mineral exploration company that holds nine strategically
located mineral claims in the eastern Athabasca basin of Saskatchewan, Canada.
The Western Cobalt properties
comprise approximately 20,130 acres (8,146 hectares) of highly
prospective geology. The claims are contiguous with UEX
Corporation's ("UEX") West Bear Cobalt-Nickel Project ("West Bear
Co-Ni").
Highlights
- UEX recently announced very high grade cobalt-nickel results
over substantial widths on their West Bear Co-Ni project, including
2.0% Co and 1.26% Ni over 10.5m in
drill hole WBC-001, and 0.73% Co and 0.36% Ni over 20.5m in drill hole WBC-005 (UEX news release of
April 9, 2018).
- Western Cobalt's properties
are contiguous to claims held by UEX, ALX Uranium Corp., Denison
Mines Corp., and IsoEnergy Ltd.
- Geological setting of the Western
Cobalt properties exhibits the critical features for both
Cobalt-Nickel and Uranium mineralization found in the region,
including proximity to the eastern margin of the Athabasca sandstone where the geological
setting unconformably overlies metasedimentary formations of the
Wollaston Domain.
- The Company is fully funded for the 2018 exploration season and
plans are underway for an aggressive exploration program on its new
Western Cobalt properties.
"This cobalt-nickel project in the Athabasca basin of Saskatchewan, and the exploration of cobalt in
the Ontario Cobalt Region, will increase Cobalt Power's property to
19,826.80 hectares," stated Chris
Healey, P. Geo VP of Exploration and Director.
Geological Setting
The Western Cobalt properties
are located at the eastern margin of the Athabasca basin of northern Saskatchewan, approximately 40 km southwest of
Cameco's Rabbit Lake mill.
There are two claim blocks, a western block, WC West, and an
eastern block, WC East.
The WC West property is covered by 25 to 50 metres of
Athabasca sandstone which overlies
Wollaston Domain basement rocks which include graphitic metapelites
and meta-arkosic gneisses.
The WC East property covers favourable Wollaston Domain basement
rocks consisting primarily of Aphebian-age metasedimentary gneissic
packages including pelitic to semi-pelitic gneisses and psammitic
meta-arkosic gneisses.
The structural setting in both the East and West properties is
complex which is considered to be highly prospective for Co-Ni
mineralization. The dominant fabric is northeast trending and
parallel to stratigraphy. Major faults in the region include
northeast trending reverse faults and north trending Tabbernor-type
sinistral faults, both of which control the distribution of uranium
deposits in the district. The West Bear Co-Ni project lies
along one of these northeast trending secondary faults.
Transaction Terms
The purchase will be accomplished by Cobalt Power acquiring all
of the issued and outstanding shares in Western Cobalt in exchange for the issuance,
pro-rata, of 12,200,000 common shares of Cobalt Power to the
existing shareholders of Western
Cobalt. At closing, the shareholders of Western Cobalt will receive the benefit of a
2.5 % net smelter royalty, of which 1.5 % may be purchased by
Cobalt Power at any time on or before the seventh anniversary of
the closing date, in consideration of a $1,000,000 cash payment. This is an arm's length
transaction and the transaction will not create any new insiders of
the corporation.
Other Business
The Board of Directors has approved a resolution to grant 10
million incentive stock options to officers, directors and
consultants to the company. The options will be exercisable at
$0.19 per share for a term of 2 years
from the date of issue. This is subject to approval of TSX-Venture
Exchange
Chris M. Healey, P. Geo, Vice
President Exploration and a Director of Cobalt Power, is the
qualified person responsible for the technical content of this
release, and consents to its dissemination.
About Cobalt Power Group Inc.
Cobalt Power Group Inc. is a publicly traded Canadian
exploration company listed on the TSX-Venture Exchange and U.S.
Pink Sheets (TSX-V: CPO, OTC Pink: CBBWF) focused on cobalt
exploration and development. The Company has made a series of
strategic property acquisitions over the past two years seeking
cobalt mineralization near Cobalt,
Ontario, a region with a long history of silver and
associated cobalt production, and now in the Athabasca basin of Saskatchewan. Property holdings total
approximately 19,826 hectares (48,991 acres) in contiguous and
strategic claim blocks. There are several historic mining
operations on the properties that are potentially accessible,
including the Smith Cobalt shaft and its underground workings.
The TSX Venture Exchange Inc. has in no way passed upon the
merits of the proposed transaction and has neither approved nor
disapproved the contents of this press release.
We seek safe harbor.
Cautionary Note Regarding Forward-Looking
Statements
This news release may contain forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects', "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "occur" or "be
achieved". Forward-looking statements involve risks, uncertainties
and other factors that could cause actual results, performance and
opportunities to differ materially from those implied by such
forward-looking statements. In particular, forward-looking
information included in this news release includes, without
limitation, the anticipated closing date of the Transaction, the
receipt of final court approval and other regulatory approvals.
Factors that could cause actual results to differ materially from
these forward-looking statements are set forth in the management
discussion and analysis and other disclosures of risk factors for
each of First Cobalt and US Cobalt, filed on SEDAR at
www.sedar.com. Although First Cobalt and US Cobalt believe that the
information and assumptions used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on
these statements, which only apply as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed times frames or at all. Except where required by
applicable law, First Cobalt and US Cobalt disclaim any intention
or obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or
otherwise.
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SOURCE Cobalt Power Group Inc