As Northern Cobalt (ASX: N27) awaits the much-anticipated resource upgrade for its flagship Stanton deposit, it has extended its share purchase plan by a week to allow existing shareholders more time to participate with knowledge of the updated resource.
With today’s announced extension, the share purchase plan will close on Wednesday 18 April – eight days after the original deadline.
“Considering the initial share purchase plan closing date is likely to be before the release of this [resource] statement, the company wishes to provide shareholders with an opportunity to participate in the share purchase plan based on the updated information,” the company stated in its ASX release.
The anticipated resource upgrade for Stanton, which is part of Wollogorang, includes 61 reverse circulation holes that were undertaken late last year as well as 20 historical drill hole results from the 1990s.
In addition to the imminent resource upgrade, Northern Cobalt also anticipates receiving assay results shortly from its final 10 diamond drill holes carried out late last year.
The share purchase plan extension will allow shareholders to have this information also when electing to participate in the plan.
Mid-last month, Northern Cobalt completed a heavily oversubscribed placement, which added A$3 million to the company’s exploration funding.
Wollogorang project in the NT
On the ground at Wollogorang, Northern Cobalt is waiting for the wet season to subside, so it can kick-off its upcoming exploration campaign, with 37 new prospects pegged for drilling, as well as carrying out a detailed airborne magnetic and radiometric survey in parallel.
In the upcoming drilling campaign, Northern Cobalt will use a Toyota-mounted rig to drill numerous shallow holes across the project.
According to Northern Cobalt managing director Mike Schwarz, the cobalt mineralisation intersected so far was relatively uniform at surface and at depth.
He said a shallower program would enable the company to more efficiently cover more ground across its extensive landholding.
Stanton is the most advanced deposit at Wollogorang and has an initial resource of 500,000 tonnes grading 0.17% cobalt, 0.09% nickel and 0.11% copper.
By late afternoon trade, Northern Cobalt’s share price was up 1.49% to A$0.34.