TORONTO, Sept. 7, 2021 /CNW/ - First Cobalt
Corp. (TSXV: FCC) (OTCQX: FTSSF) (the "Company") today
announced that Kuya Silver Corporation ("Kuya") has given notice of
intention to exercise an option to earn a 70% interest in all of
First Cobalt's remaining mineral rights in the Canadian Cobalt
Camp.
Highlights
- Kuya previously acquired a 100% interest in a property package
surrounding the Kerr Lake area
(the "Kerr Assets") for $4 million.
Kuya also received a six-month option to elect to exercise to earn
up to a 70% interest in First Cobalt's remaining Cobalt Camp assets
(the "Remaining Assets") for an additional $1 million in cash or Kuya shares
- The option has been exercised by Kuya by issuing 671,141 common
shares at a 20-day VWAP of $1.49
- Over a 3-year earn-in period, Kuya will be required to make
$1 million in additional payments to
First Cobalt and invest $4 million in
exploration activities. A $2.5
million milestone payment is triggered upon completion of a
maiden mineral resource estimate of at least 10 million silver
equivalent ounces on either of the Kerr Assets or the Remaining
Assets. The payment increases to $5
million should the resource exceed 25 million silver
equivalent ounces
- First Cobalt retains a right
to refine base metal concentrates produced at First Cobalt's
refinery as well as a back-in right for any discovery of a primary
cobalt deposit on the Remaining Assets
Trent Mell, President & Chief
Executive Officer, commented:
"This option agreement allows us to focus on our strategy of
producing the world's most sustainable battery materials for the EV
market. Our primary focus is to commission our Canadian
hydrometallurgical refinery in Q4 2022 and advance exploration
activities at our Iron Creek cobalt-copper project in Idaho.
"As Kuya builds upon the work we completed in 2017 and 2018,
our shareholders will benefit from their success through milestone
payments and a 30% interest in the resulting joint venture. The
Kuya team's strong technical skills is suited to the style of
mineralization in the Cobalt Camp. We are keen to see exploration
results in historically underexplored areas of this silver-cobalt
district, including known targets such as the Schumann Lake
area."
The Cobalt Camp
First Cobalt holds the largest
land package in the historic silver-cobalt mining camp of
Cobalt, Ontario, with more than
10,000 hectares and several past-producing mines, including some of
the region's largest high-grade silver producers. The Company
invested $10 million in an extensive
exploration program that included creating a proprietary 3D
geological model based on digital compilation of historic mine
workings, integrated with exploration drilling, geophysical data
and surface bedrock geology maps.
Over 600 million ounces of silver and 50 million pounds of
cobalt were mined in the district along with copper and nickel over
a 60-year period. The Remaining Assets land package is deemed
highly prospective for blind mineralization under glacial cover and
under the Nipissing Diabase mafic intrusions in a similar
geological setting as the Kerr-Crown Reserve-Drummond silver
deposits and several other exceptionally high-grade deposits within
the Cobalt Camp. Previous drilling and geophysical surveys in the
Central Camp area generated broad target areas where
silver-cobalt-nickel potential is considered high. Drilling results
in the South Camp showed new zones of mineralization occur beyond
the previously mined areas.
About Kuya Silver
Kuya Silver is a Canadian–based
mineral exploration and development company with a focus on
acquiring, exploring, and advancing precious metals assets in
Peru and Canada.
About First Cobalt
First Cobalt's mission is to be
the most sustainable producer of battery materials. The Company
owns a permitted North American hydrometallurgical refinery, a
critical asset in the development and manufacturing of batteries
for electric vehicles. First Cobalt owns the Iron Creek cobalt-copper
project in Idaho, USA as well as
several significant cobalt and silver properties in the Canadian
Cobalt Camp.
Qualified Person Statement
Dr. Frank Santaguida, P.Geo., is
the Qualified Person as defined by National Instrument 43-101 who
has reviewed and approved the contents of this news release. Dr.
Santaguida is employed as Vice President, Exploration for First
Cobalt.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking
Statements
This news release may contain forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects', "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "occur" or "be
achieved". Forward-looking statements involve risks, uncertainties
and other factors that could cause actual results, performance and
opportunities to differ materially from those implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements are set
forth in the management discussion and analysis and other
disclosures of risk factors for First Cobalt, filed on SEDAR at
www.sedar.com. Although First Cobalt believes that the information
and assumptions used in preparing the forward-looking statements
are reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed times frames or at all. Except where required by
applicable law, First Cobalt disclaims any intention or obligation
to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
SOURCE First Cobalt Corp.