TORONTO, ONTARIO--(Marketwired - June 21, 2017) - First Cobalt Corp. (TSX VENTURE:FCC)(OTCQB:FTSSF) (the "Company") is pleased to announce it has entered into a non-binding letter of intent ("LOI") to acquire all of the issued and outstanding shares of CobalTech Mining Inc. (TSX VENTURE:CSK), an arm's length party, through a negotiated share exchange transaction.
CobalTech has assembled a strong portfolio of prospective cobalt properties, including 11 past producing mines in the town of Cobalt, Ontario, the Werner Lake East Cobalt property near Kenora, Ontario and eight properties in the Province of Quebec. Its flagship asset is the Duncan Kerr Project and includes the past-producing Kerr Lake and Lawson mines which operated between 1905 and 1966 and reportedly produced approximately 32.7 million ounces of silver as well as significant cobalt by-product.
CobalTech also owns a 100 tonne per day mill in the town of Cobalt. This asset would complement the Yukon refinery, over which First Cobalt has a joint venture option for a 50% interest.
CobalTech has 6,588 tonnes of crushed stockpile with an average grade of 761 g/t Ag and 0.95% Co over 2,000 samples on its Duncan Kerr property.1 The potential quantity and grade of this stockpile is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the stockpile being delineated as a mineral resource.
