Global Cobalt Corporation is a strategic metals company focused on the development of a new mining region in the Republic of Altai, Russia.
As first mover into this new region, Global Cobalt will be able to leverage the world-class Karakul Cobalt Project and bring on stream a number of projects creating a mining district with enormous potential.
The Republic of Altai is a mineral rich, pro-mining region of southern Siberia, Russia, which neighbours the similarly mineral-endowed countries of Kazakhstan, Mongolia and China.
Recognizing strategic metals, and more specifically cobalt, as essential to the world's ever growing need due to the increasing focus on environmental sustainability, the electrification of the modern vehicle and the escalating appetite for consumer electronics such as mobile phones, tablets and laptops, Global Cobalt's primary objective is to define economically feasible projects through the acquisition of tactical mineral assets while aggressively expanding and exploring existing properties to supply the growing demand for cobalt and other strategic metals.
Global Cobalt Corp. has entered into a mining lease agreement with an option to acquire the Iron Creek cobalt project, a prospective cobalt property in the Idaho cobalt belt trend located near Salmon, Idaho. The Agreement is being made with Chester Mining Company (the "Owner" and/or the "Lessor").
- - The Iron Creek project provides Global Cobalt with a foothold in the Idaho Cobalt Belt, the most prolific belt of cobalt mineralisation in the United States.
- - Approximately 30,000 feet of diamond drilling and 1,500 feet of underground drifting has been completed exploring the project by previous operators.
- - Historic literature defines "two distinct lenses of cobalt mineralization."
- - The first lens estimated to contain 1,050,000 tons grading 0.61% cobalt and 0.3% copper and having a strike length of about 750 feet.
- - A second lens of high-grade cobalt mineralization extends for 600 feet of strike length, is deeper than the first lens, and averages about 0.48% Co and 0.24% Cu.
Erin Chutter, President and CEO of Global Cobalt Corp. commented: "The addition of Iron Creek into our cobalt project portfolio is exciting and diversifies our project mix at a time when cobalt is becoming increasingly important in the battery sector. Karakul continues to be important to the company, but some shareholders are interested in projects in other regions like our Canadian Werner Lake project and now this US based asset."
Paul Sarjeant, the Company's VP Exploration added: "This property has the potential to add significant value to our portfolio of cobalt properties. The Iron Creek project shares characteristics with a series of sediment hosted cobalt-copper deposits within the 60 km long Idaho Cobalt Belt, including Formation Metal's proposed Idaho Cobalt Mine and the Blackbird Mine. This transaction provides tremendous upside potential for our shareholders and we will leverage off extensive historic exploration and development work carried out by major mining companies, including Noranda, Cominco and Hanna Mining amongst others. As a result of this past work and development history, we have an extensive database from which to work that will allow us to quickly advance our exploration efforts."
The Iron Creek Cobalt-Copper Project
The Iron Creek Cobalt-Copper property in Idaho, consists of seven patented mining claims of approximately 118 acres located in Lemhi County about 26 miles southwest of the town of Salmon, Idaho. Discovered in the 1940's as a possible iron deposit, past work by previous operators identified several zones of cobalt-copper mineralisation. Extensive drilling, sampling, and geologic work was completed on two of the most promising areas. Numerous other exploration targets have been identified on the property that have yet to be fully evaluated.
The first mineral resource of interest referenced in the literature is an underground target described by Noranda Exploration in a 1980 report as "two distinct lenses of cobalt mineralization." The first lens was called a "reserve" and was estimated to contain 1,050,000 tons grading 0.61% cobalt and 0.3% copper and having a strike length of about 750 feet. A second lens of high-grade cobalt mineralization occurs to the northwest, and again is described as a "reserve." This lens extends for 600 feet of strike length, is deeper than the first lens, and averages about 0.48% Co and 0.24% Cu. The authors estimated this resource to be around 229,000 tons. In all, the Noranda authors state that between both lenses, they expect the potential for at least two million tons of similar grade resources could be developed. While this area will require more work to bring these resources into today's reserve compliant categories, if confirmed these zones would represent over 15 million pounds of cobalt and over 7.4 million pounds of copper. The reader is cautioned that data included in the reporting of resources pre-dates National Instrument 43-101 or is otherwise not compliant with National Instrument 43-101. Such data is marked as being non-compliant, and a qualified person has not verified such data. As a result, the reader is cautioned not to rely upon that data. The Company is not treating the historical estimates as current mineral resources.
Mitchell Smith, Corporate Development commented on adding to the Company's existing cobalt properties through this Agreement:"The Tesla-Panasonic 'Gigafactory' partnership has kickstarted a race to see which mining companies can satisfy the battery super-plant's appetite for materials including cobalt. It is Global Cobalt's every intention to be one of those companies. We spent the last several years assessing opportunities in the cobalt space and at the same time have built not only a vast wealth of knowledge in the sector but also strategic relationships with end users such as Easpring, so that we can supply cobalt from our global portfolio of projects in the near future. The Iron Creek Cobalt Project fits a niche in being a high-grade cobalt project that is a strong candidate to fill some of that North American cobalt demand brought on by the electric vehicle race."
Highlights of the Agreement include:
1.The primary term of this lease will be twenty (20) years with the option for GCO to extend the lease for up to two successive terms of twenty (20) years each.
2.GCO has the option to terminate this lease by providing written notice to the Lessor six (6) months prior to the termination date.
3.A minimum of CDN $500,000 of work performed by the Lessee upon the Leased Premises during the first 3 years of the term of the lease.
4.GCO shall pay the Owner One Million (1,000,000) shares of common stock of Global Cobalt upon the completion of the Agreement and Lessee shall pay quarterly a minimum payment of CDN $1,250 per month (CDN $15,000.00) per year as an advance against royalties on each anniversary of the agreement.
5.The advance royalty payments may be in the form of cash or stock or combination as agreed by the parties.
6.GCO shall pay the Lessor a 2.5% Net Smelter Royalty on all development and production ores and minerals extracted, milled and sold from the Leased Premises.
7.At any time following completion of the agreement, the Lessee may purchase one-half the royalty in the form of cash or stock or combination consideration of CDN $2,500,000.
8.At any time during the term of the Lease, the Iron Creek claims can be purchased, at the election of Global Cobalt, for a onetime payment in the form of cash or stock or combination as agreed by the parties at a price based on independent valuation.
The shares issued in the Service Settlement will be in accordance with applicable securities law and will be subject to the prior approval of the TSXV.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and was reviewed on behalf of the company by its Qualified Person, Mr. Paul Sarjeant, P.Geo, the Company's VP Exploration.