CBLT Inc. (TSXV: CBLT) announced that it will sell two claims in the historic Cobalt-Gowganda silver-cobalt mining district of Ontario to Australian miner Krakatoa Resources (ASE:KTA).
In a press release, the Burlington-based company explained that the claims are located peripheral to a cluster of former silver-cobalt mines at Gowganda, 85 kilometres northwest of the town of Cobalt, whose mines operated from 1910 to 1989. Production from this region to the end of 1969 was 60.1 million ounces of silver and 1.4 million pounds of cobalt.
Under the terms of the agreement, which should be completed by the end of the month, Krakatoa will purchase the claims covering 41 mining units for consideration of AUD $50,000 cash plus 2.5 millionKrakatoa common shares issued to CBLT at a price of AUD $0.035; Krakatoa will also issue CBLT an option to purchase 2.5 million Krakatoa common shares at an exercise price of AUD $0.10.
The deal also stipulates that CBLT manages, under Krakatoa's direction and if so requested, the exploration programmes to be undertaken.
"Our early entrance in the Gowganda/Cobalt Camp is now creating tangible value," said CBLT's CEO, Peter M. Clausi, in the media statement. "We are eager to get in the field and help Krakatoa work these assets. The world needs Canada's cobalt."
According to CBLT, Canada's 'blue gold' is considered ethical. This is in comparison to the mineral extracted from places where labour conditions and governance are plagued with irregularities.
From its low of $21,750 per tonne in February, 2016, cobalt has recently traded as high as $95,000 per tonne.