Metals Australia signs deal to purchase cobalt project in Quebec
Metals Australia (MLS) has signed an agreement to acquire the high-grade Lac du Marcheur Cobalt Project in Quebec, Canada.
The 1,780ha Lac du Marcheur Cobalt Project is in the cobalt endowed Laurentian region of southern Quebec.
MLS director Gino D’Anna said: “This is an outstanding opportunity for MLS as we continue to enhance our asset portfolio which is aligned to technologically advanced metals, being cobalt, lithium and graphite.
“The agreement to acquire the project was a natural decision for MLS given our current landholding and strategic position in Quebec and our desire to be at the forefront of the technological revolution that is the lithium-ion battery.
“Trench sample assays at our Lac Pauze cobalt occurrence within the Project have returned results of up to 0.18% Co, positioning our Lac du Marcheur Cobalt Project as one of the highest-grade cobalt projects in the world.
“This area is host to numerous high-grade cobalt occurrences and developing projects such as Hinterland Metals Chilton Cobalt Project.
"The strike length of the mineralised zone within the North Block is over 5km, north-south, whilst the strike length of the mineralised zone within the South Block is just under 6km, north-west-south-east."
The Lac du Marcheur Cobalt Project comprises two discrete contiguous groups of claims in the North Block and the South Block.
This project consists of 35 granted mineral claims and it is easily accessible through a paved highway.
The Lac du Marcheur Cobalt Project contains the Lac Pauze and Lac Pauze-Ouest cobalt-copper-nickel showings and is on strike with a number of other documented cobalt-copper-nickel showings, including SC-95-02, Lac Baume, Chilton Nickel, Lac Sicotte, Lac du Marcheur and Lac Sicotte-Est.
A field work programme intended to identify extensive cobalt mineralisation on the property is proposed to start within four weeks from the completion of the acquisition.
The proposed exploration programme will consist of prospecting, detailed mapping, ground geophysics and diamond drilling.
The acquisition agreement gives MLS a due diligence period of 15 business days to complete legal and technical due diligence.
If the company decides to proceed with this acquisition, MLS will issue 12.5 million fully paid ordinary shares to the vendor.
Of the consideration shares being issued, the vendor has agreed to have 50% held in escrow for 12 months from the date of issue, while the other 50% remain un-escrowed.
The vendor is already a major shareholder of MLS and has agreed to sell the Lac du Marcheur Cobalt Project for a comparatively low consideration because of the shareholding and the retention of a 2% NSR.