Winmar Resources (ASX: WFE) has hooked a project in one of Canada’s high-grade silver and cobalt districts, as the cobalt price hits US$70,000 per tonne – the highest price its commanded in almost 10 years.
The project encompasses three blocks with mining claims across 2,240 hectares within Ontario.
According Winmar, the Gowganda mine district is one of the most cobalt and silver prospective regions outside of the Democratic Republic of Congo which produces half of the world’s cobalt.
Under the acquisition terms, Winmar will pay CBLT Inc (TSXV: CBLT) a non-refundable $15,000 deposit which will be offset when the purchase goes through.
Upon conducting due diligence to 22 December, Winmar Resources can commit to the acquisition of Boom Lake block and pay A$50,000 cash plus issue $50,000-worth of its shares.
There is also a 12-month option period where in return for a A$20,000 payment, Winmar will gain the United Reef and Calcite Lake blocks.
Completion of the Boom Lake transaction is scheduled for early January next year.
The claim blocks are near to previous high-grade silver-cobalt deposits which were mined primarily for their silver between 1910 and 1989.
By the end of 1969, an estimated 60.2 million ounces of silver and 1.3 million pounds of cobalt had been produced.
Reviews of historic grab samples from Boom Lake have returned cobalt grading up to 0.9%, while Calcite Lake has yielded cobalt values up to 0.304%.
In addition to its recent cobalt acquisition, Winmar holds a 70% beneficial interest in the Hamersley iron or project in Western Australia’s Pilbara.
The company’s primary focus is advancing the Winmar deposit within the project area.
At the end of November, Winmar announced the appointment of Jason Brewer as the company’s chairman.
Mr Brewer is currently a director with Force Commodities (ASX: 4CE) which is exploring for lithium in the DRC. Mr Brewer also is on the board of Vector Resources (ASX: VEC), Tao Commodities (ASX: TAO), Cape Lambert Resources (ASX: CFE) and the chief executive officer of privately-owned African Phosphate.
He replaces outgoing chairman Alex Alexander who joined the company in 2011 as a non-executive director.