- Canada Silver Cobalt (CCW) has entered into a non-binding letter of Intent with Power Group Projects Corp. (PGP)
- PGP would sell its interest in specific Cobalt area properties to Canada Silver Cobalt Works
- The LOI is subject to a 90-day exclusivity and due diligence period
- Under the terms of the LOI, the company and PGP would enter into a formal agreement whereby the company would purchase a 100 per cent interest
- Canada Silver Cobalt Works is a Canadian mining company
- Shares of Canada Silver Cobalt Works Inc. (CCW) are down 2.38 per cent, trading at $0.205 as of 2:37 PM ET
Canada Silver Cobalt (CCW) has entered into a non-binding letter of Intent with Power Group Projects Corp. (PGP).
The letter of intent contemplates a transaction whereby PGP would sell its interest in specific Cobalt area properties, located in Coleman, Bucke and Lorrain townships in the Larder Lake Mining Division of Ontario to Canada Silver Cobalt Works Inc.
The LOI is subject to a 90-day exclusivity and due diligence period.
Under the terms of the LOI, the company and PGP would enter into a formal agreement whereby the company would purchase a 100 per cent interest.
This is subject to a 2 per cent net smelter return (NSR) in specific PGP Properties and the data related to the property, subject to a payment of $75,000 cash and the issuance of 300,000 shares of Canada Silver to PGP upon closing the transaction.
The properties in question are made up of 66 claims and 21 mining and surface rights patents totalling approximately 1,000 hectares.
Within the patented claims, the historic Smith Cobalt Mine sunk a shaft to a depth of 452 feet in 1930s where they worked 4 veins and produced over 500 pounds of cobalt.
The property is adjacent to the past-producing Deer Horn Mine where over 2.5 million ounces of silver and over 88,000 pounds of cobalt, 150,000 pounds of copper, and 30,000 pounds of nickel were recovered between 1960 and 1965.
“The purpose of this transaction would be to further strengthen the company’s battery metals portfolio and provide an additional key land package in the Cobalt Camp,” said Gerhard Kiessling, Exploration Manager.
“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,” he added.
Canada Silver Cobalt Works is a Canadian mining company engaged in the acquisition, evaluation, exploration and development of mineral properties.
Shares of Canada Silver Cobalt Works Inc. (CCW) were down 2.381 per cent, trading at $0.205 as of 2:37 PM ET.