Winmar Resources (ASX: WFE) has confirmed the acquisition of three mining blocks covering 2,240 hectares in eastern Ontario, Canada from CBLT Inc. (TSXV: CBLT), a TSX-listed Resources company.
The acquisition is Winmar’s first in the high-grade silver-cobalt mining district of Cobalt-Gowganda, a region with extensive historical mining activity. Winmar is actively pursuing a number of significant acquisition opportunities related to cobalt within Canada and other high-grade regions globally.
The deal was originally announced late last year, and has been formally completed with the following transaction details:
- Winmar to pay an initial $15,000 to CBLT to be credited against the purchase price of the Bloom Lake claim block on closing;
- Winmar purchased the Bloom Lake claim block from CBLT for a consideration of A$50,000 cash (less the deposit) plus A$50,000 in Winmar shares issued to CBLT at a price of A$0.003 per share;
- Winmar paid A$20,000 in cash to CBLT for which Winmar acquired a 12-month option to purchase either or both the United Reef claim block and the Calcite Lake claim block;
- Winmar can exercise the Option to purchase either or both of the United Reef and Calcite Lake claim blocks by paying a further A$50,000 per claim block to CBLT and A$50,000 in Winmar shares per claim block at a share price equal to the 10-day VWAP (volume weighted average price) determined on the day the options are exercised;
- The option to purchase either or both the United Reef and Calcite Reef blocks of claims will vest independently upon the completion of at least C$50,000 of exploration activity on each respective block of claims during the 12-month term of the option period.
Winmar’s ground is confirmed to sit close to a cluster of former high-grade silver-cobalt mines at Gowganda, 85km northwest of Cobalt, which operated from 1910 to 1989. Up until 1969, production from this area reached 60.2 million ounces of silver and 1.3 million pounds of cobalt, although the focus was primarily on silver with cobalt left unexplored.
However, due to newly-discovered demand for cobalt fueled by lithium-ion battery production and electric car (EV) sales, cobalt has back into vogue from a miners perspective.
Winmar has completed an initial ground inspection at the Bloom Lake claim block and will advance its activities on all three properties as soon as possible.
Furthermore, CBLT has been tasked with managing Winmar’s field programs on the three properties on a cost basis plus a 10% management fee, which Winmar says is a good opportunity to work directly with CBLT’s highly capable management and field personnel.
According to a market update, Winmar says the initial tasks will be “compiling datasets from previous historic sampling, drilling, preparing forward work programs and applying for permits”, with market updates being made public as they become available in due course.