TSX.V: CPO, Pink Sheets: CBBWF
TORONTO, June 7, 2018 /CNW/ - Cobalt Power Group Inc.
("Cobalt Power" or the "Company") (TSX.V: CPO, OTC Pink: CBBWF) is
pleased to announce the Company's closing of the recently acquired
Ontario Cobalt block (press release Feb 13,
2018) which increases Cobalt Power's landholdings by
approximately 25% to over 11,680 ha (28,862 acres). This
acquisition positions Cobalt Power as one of the largest landowners
in the Cobalt and Silver Center
camps of Ontario.
Highlights:
- The Ontario Cobalt Project consists of 14 mineral claims (184
units) covering 2,944 ha (7,275 acres) located in the Cobalt Camp,
Ontario.
- Highly prospective land package along the main structure of the
Cobalt Camp.
- Property exhibits all geological features for Co-Ag
mineralization (diabase dyke, Coleman member sediments, major
regional faulting).
- The company is fully funded for 2018.
- Aggressive exploration program planned for this year.
Geological Setting
Government geological mapping indicates that the claims are
underlain entirely by the rocks of the Cobalt Group, including the
Coleman Formation, and the Nipissing diabase sill. In this area, the
Coleman formation consists of a sequence of conglomerates,
sandstones, siltstones and argillites, which is the typical
composition of this formation throughout the Cobalt camp. 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, but may
locally overlie the Coleman.
Throughout the Cobalt camp, the
most significant Co-Ag mineralization is commonly associated with
the Coleman formation 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 30m 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
formation, along these reactivated faults. The Montreal River fault
is one of the major regional faults in the area.
Very little historic work has been reported for this area, but
with the presence of both critical stratigraphic units in
juxtaposition, as well as the presence of a major regional fault on
the property, the geological setting appears to be highly
favourable for successful exploration.
Transaction Terms
The purchase will be accomplished by Cobalt Power acquiring all
of the issued and outstanding shares in Ontario Cobalt Property
Developers Inc. In the exchange for the issuance of common shares
of Cobalt Power to the existing shareholders of Ontario Cobalt
Property Developers Inc., the latter will be granted a 2.5 % net
smelter royalty, of which 1.5% may be purchased by Cobalt Power at
any time on or before the seventh anniversary of the closing date
in consideration of a $1,000,000 cash
payment This is an arm's length transaction and the transaction
will not create any new insiders of the Company.
About Cobalt Power Group Inc.
Cobalt Power 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 11,680 hectares (28,861 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.
Qualified Person
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
"Chris Healey"
_________________
Chris Healey P. Geo, VP
Exploration and a Director of Cobalt Power Group
Cobalt Power Group Inc.
www.cobaltpowergroup.com
We seek safe harbor.
"Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this 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.
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SOURCE Cobalt Power Group Inc