TSX.V: CPO, Pink Sheets:
CBBWF
VANCOUVER, Feb. 13, 2018 /CNW/ - Cobalt Power Group Inc.
(the "Company") (TSX.V: CPO, OTC Pink: CBBWF) is pleased to
announce signing a share purchase agreement to acquire Ontario
Cobalt Property Developers Inc. ("Ontario Cobalt" or the "Vendors")
- a privately held mineral exploration company which holds 14
strategically located mineral claims (184 units) (the "Properties")
in the Gillies Limit Township, Ontario. The Properties encompass
approximately 2,944 ha (7,275 acres) of prospective mineral lands
in the Cobalt Camp.
Highlights
- Cobalt Power will become one of the largest landowners in the
Cobalt and Silver Center camps of
Ontario, holding over 11,680 ha
(28,862 acres).
- Ontario Cobalt claims are
contiguous with both Cobalt Power Group and First Cobalt
Corporation assets and are located within the "fairway" of the
Cobalt Camp.
- Geological setting of the Properties exhibits all of the
critical features for Co-Ag mineralization in the region (diabase
dyke, Coleman member sediments, major regional faulting).
- The Company is fully funded for this calendar year and plans
are underway for an aggressive 2018 exploration program.
"Our company continues to accumulate valuable assets within the
prolific Cobalt Camp," comments Dr. Andreas
Rompel, President & CEO. "Our aim is to become the most
important player in the region. Acquisition and intelligent
exploration will help drive us to that end."
Geological Setting
Government geological mapping indicates that the claims are
underlain entirely by the Coleman and Firstbrook members of the
Gowganda formation, the lowest
portions of the Cobalt Group, and the Nipissing diabase sill. In this region,
the Coleman member consists mainly of a sequence of conglomerates
and wackes, which is the typical composition of this member
throughout the Cobalt Camp. The Firstbrook member consists of
siltstones and arenites. The Nipissing diabase is generally a sill
intruding the Coleman sediments, but locally can include dykes. The
Nipissing mafic rocks generally
appear to overlie the Coleman formation.
Throughout the Cobalt Camp, the most significant Co-Ag
mineralization is commonly associated with the Coleman member where
it is intruded by the Nipissing
sill, and where quartz-calcite-filled fractures extend into the
over- or under-lying Coleman sediments, typically up to
30 m above and below the
contacts.
The Montreal River fault is present towards the eastern margin
of the claim block. The general model for Co-Ag
mineralization in the Cobalt Camp calls for a spatial relationship
with periodically reactivated regional fault systems rooted in the
Archean basement. Heat released by the Nipissing diabase intrusive facilitated the
mobilization of various metals from the Archean basement, which
were then deposited in localized displacements of the
Huronian-Archean unconformity, particularly in the Coleman member,
along these reactivated faults. The Montreal River fault is one of
the major regional faults in the area.
Transaction Terms
The purchase will be accomplished by Cobalt Power Group
acquiring all of the issued and outstanding shares of Ontario
Cobalt in exchange for the issuance, pro-rata, of 15,000,000 common
shares of Cobalt Power to the existing shareholders of Ontario
Cobalt. At closing, the shareholders of Ontario Cobalt will receive
the benefit of a 2.5% net smelter returns royalty, of which
one-and-one half percent (1.5%) may be purchased by the Company at
any time, on or before the seventh (7th) anniversary of
the Effective Date, in consideration of a $1,000,000 cash payment.
The share purchase agreement and the closing of the acquisition
remains subject to approval of the TSX Venture Exchange, as well as
such other conditions as are customary in transactions of this
nature.
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 two years, seeking cobalt mineralization near
Cobalt, Ontario - a region with a
long history of silver and associated cobalt production. Property
holdings total approximately 8,736 hectares (21,600 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