Capital Mining to purchase cobalt project in Western Australia
Capital Mining has entered a binding agreement with Maincoast to acquire the Scotia Cobalt-Nickel Project in the eastern goldfields of Western Australia.
Under the agreement, Capital Mining will purchase 100% interest in the project, subject to satisfactory completion of due diligence, which is expected to be completed by 21 April.
Scotia Project is a highly prospective cobalt asset situated in the active mineral province nearly 65km of Kalgoorlie.
Under the agreement, Capital Mining will start due diligence in respect of the agreement.
The company also intends to utilise the due diligence process to generate priority cobalt target areas, and following its completion will accelerate its exploration programme at the project.
Under the agreement, Capital Mining will pay five million fully paid ordinary shares for the grant of the exclusive due diligence/option period.
It will pay 50 million fully paid ordinary Capital Mining shares and 25 million options to subscribe at $0.02 each within three years of the date of issue after completion of the acquisition.
Capital Mining has also successfully completed a placement to raise $1m through the issue of 111 million Ordinary Shares in Capital at an issue price of 0.9c per share.
Funds raised will be used for targeted exploration programmes across the company’s project portfolio and also as working capital.
The Scotia Project is situated 20km from the strike of the Silver Swan and Black Swan nickel mines within the Archean Kalgoorlie Greenstone Terrane.
Primarily, nickel was the key mineral in this project but cobalt mineralisation has also been identified within the project area.