International Cobalt Acquires Two Additional Projects
VANCOUVER, British Columbia, April 17, 2018 (GLOBE NEWSWIRE) -- International Cobalt Corp. (CSE:CO) (the “Company” or “International Cobalt”) is pleased to announce that its wholly owned subsidiary, American Cobalt Corp. (“American Cobalt”) has entered into two option agreements (the “Option Agreements”) with Supreme Metals Corp. to acquire up to an 80% interest in two cobalt projects which are comprised of the Foster Marshall Project and the Mount Thom Project (collectively known as the “FM Projects”).
Pursuant to the Option Agreements, American Cobalt will have the option to earn an initial sixty percent (60%) interest in any of the FM Projects by making an initial payment of $87,500 and by funding exploration to reach an NI 43-101 compliant resource estimate within sixty (60) months of signing of the Option Agreements. American Cobalt will have the right to earn a further twenty percent (20%) interest and any of the FM Projects by completing a Preliminary Economic Assessment (PEA) within twenty-four (24) months of completing the initial resource estimate. Each of the FM Projects is subject to a 1.5% NSR in favor of a third party.
The Company will also pay a finder’s fee to an arm’s length party in connection with the acquisition of the FM Projects.
ABOUT THE FOSTER MARSHALL PROJECT
The Foster Marshall Project is located in the historic mining area of Cobalt, Ontario and is approximately 25 kilometres north of the former producing Langis Mine project in the Larder Lake Mining Division. The area covers approximately 256 hectares (633 acres) and is comprised of seven mineral claims.
Historical assays on surface grade up to 4.5% Cobalt and drill hole intercepts of 30 centimetres grading 87 oz/ton silver with several intercepts containing copper, lead and zinc.
ABOUT THE MOUNT THOM PROJECT
The Mount Thom Project is located 22 kilometres east of Truro in Nova Scotia, Canada, over a historic copper deposit that was discovered in the early 1970’s by Imperial Oil. It is comprised of 39 mineral claims over five neighbouring licenses and covers approximately 1,560 acres. The project is also close to the TransCanada Highway #104 and power lines, making the area highly accessible.
Even though assays of at the time of Imperial Oil’s work reported up to 1.66% copper over 15.5 feet (4.7m), IOCG deposits and associated cobalt mineralization were unknown at the time. Subsequently, high concentrations of cobalt assaying up to 0.57% cobalt were reported in mineralized outcrop and rubble crop from trenches (source Nova Scotia assessment report AR2005-005). The deposit is now recognized as having affinities to IOCG-style deposits and is considered highly prospective for cobalt mineralization.
ABOUT THE COBALT MARKET
Cobalt prices recently reached a 10 year high of $42.75 US per pound and have shown a steady increase since the mid-point of 2015. Cobalt is an important component of many of the lithium-ion batteries used in a wide range of applications from cell phones to electric vehicles (EV) and the home energy storage market. Driven primarily by the EV market demand for cobalt is expected to remain strong and growing for the near future. Currently over 60% of the global supply of cobalt is sourced from mines operating in the Democratic Republic of the Congo (DRC). Political instability in the DRC coupled with social-economic issues surrounding mining in the country including reports of child labour have led many tech companies to seek supplies of the metal from more stable jurisdictions.
ABOUT INTERNATIONAL COBALT CORP
International Cobalt Corp. (CSE:CO) is a Canadian based mineral exploration and development business focusing on the burgeoning cobalt sector. The rapidly growing large battery industry, a major consumer of cobalt, makes cobalt an appealing sector of focus. The Company seeks to add shareholder value by sourcing and developing projects in safe, progressive jurisdictions adhering to strict environmental and social standards.
The technical information in this news release has been reviewed by Neil McCallum, P.Geol., of Dahrouge Geological Consulting Ltd., a Qualified Person as defined by National Instrument 43-101.
On behalf of:
Timothy Johnson, President
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward‑looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.
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