TSX.V: CPO, Pink Sheets: CBBWF
VANCOUVER, Nov. 6, 2017 /CNW/ - Cobalt Power Group Inc.
(the "Company") (TSX.V: CPO, OTC Pink: CBBWF) is pleased to
announce that, further to the Letter of Intent (LOI) signed earlier
this year (see news release dated July 27,
2017), it has entered into a definitive agreement ("the
Agreement") with Canadian Cobalt Projects Inc. The Agreement
entails the acquisition of five separate blocks of prospective
mineral claims encompassing approximately 7,500 hectares located in
the Cobalt Camp region of northern Ontario, along with several applications for
mineral tenements in historic cobalt mining areas of southern
Sweden. The Company has completed
the filings with the TSX Venture for approval of the
transaction.
Highlights
- Upon completion of the acquisition, Cobalt Power will become
one of the largest landowners in the prolific Cobalt Camp/Silver
Centre region of Ontario, with
land holdings totaling approximately 8,700 ha.
- The claim group is in close proximity to several historic
mines, including the former producing Keely and Frontier Mines, and
is also near the recently announced First Cobalt/Cobalt One
lands.
- The presence of historical showings on the properties, combined
with a favourable geological setting, enhances the exploration
potential for the properties.
"Global supply and demand forces continue to drive the price of
cobalt to new yearly highs as additional sources are sought by the
energy storage industry," comments Dr. Andreas Rompel, President & CEO. "The
acquisition of the Canadian Cobalt Project turns us into one of the
leading players in the Ontario Cobalt Camp, a region where major
battery makers are beginning to focus their attention."
Transaction Details
Pursuant to the terms of the Agreement, acquisition of the
Properties will be accomplished by Cobalt Power Group acquiring all
of the issued and outstanding shares of Canadian Cobalt in exchange
for the issuance of 29,500,000 common shares of Cobalt Power to the
existing shareholders of Canadian Cobalt. At closing, the
shareholders of Canadian Cobalt will receive the benefit of a 1.5%
net smelter returns royalty, of which 75% may be purchased at any
time in consideration for a cash payment of (CDN)$1,000,000. Following completion of the
transaction, Canadian Cobalt will become a wholly owned subsidiary
of Cobalt Power Group.
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 year, seeking cobalt mineralization near Cobalt, Ontario - a region with a long history
of silver and associated cobalt production. Property holdings,
including the Canadian Cobalt Project, total approximately 8,544
hectares (21,100 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.
Chris M. Healey, P. Geo, VP
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.
On behalf of the Board of Directors
"Andreas Rompel"
_________________
Dr. Andreas Rompel, President and
CEO
Cobalt Power Group Inc.
www.cobaltpowergroup.com
We seek safe harbor.
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.
Forward Looking Information
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this
News Release. WARNING: The Company relies on litigation protection
for "forward looking" statements. Actual results could differ
materially from those described in the news release as a result of
numerous factors, some of which are outside the control of the
Company. This news release does not constitute an offer to sell or
a solicitation of an offer to sell any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be
offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
SOURCE Cobalt Power Group Inc
