Cobalt Power Group Inc. (“Cobalt Power” or the “Company”) (TSX V: CPO) (OTC Pink: CBBWF) is pleased to announce closing of the acquisition of Western Cobalt Corp., (“Western Cobalt”) a privately held mineral exploration company that holds 9 strategically located mineral claims in the eastern Athabasca basin of Saskatchewan, Canada. As earlier announced, 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”).
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.Sm in drill hole WBC-001, and 0. 73% Co and 0.36% Ni over 20.Sm 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 lsoEnergy 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 it 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.
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. Thedominant 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.
Cobalt Power has now finalized this transaction by 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. 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 fifth anniversary of the closing date, in consideration of a $1,500,000 cash payment.
Chris M. Healey, P. Geo, Vice President Exploration and a Director of Cobalt Power Group, is the qualified person responsible for the technical content of this release, and consents to its dissemination.