May 08, 2017
CobalTech Makes Final Payment for Duncan Kerr Project and Begins Pilot Testing
TORONTO, ON–(Marketwired – May 08, 2017) – COBALTECH MINING INC. (TSX VENTURE: CSK) (FRANKFURT: 9BN1) (WKN: A2DG59) (OTC PINK: BNCIF) (the “Company” or “CobalTech”) announces that further to its press releases of October 3, 2016 and October 19, 2016, the Company has made the final payment in connection with the Purchase Agreement (the “Purchase Agreement”) with TrioResources AG Inc. (“Trio”) with respect to the acquisition of mineral claims and related production facilities and equipment (the “Assets”) of the past-producing Duncan Kerr Project (the “Project”) located in the Cobalt region of Northeastern Ontario, Canada (the “Acquisition”).
The Duncan Kerr Project is located within the historical Cobalt camp in northeastern Ontario and consists of two contiguous patented mining claims totalling 32.374ha in area. The property encompasses part of the historical mine workings of the Kerr Lake Mine, as well as the historical mine workings of the Lawson Mine. An estimated total of 32,715,590 oz of Ag have been produced from the Kerr Lake and Lawson Mines as well as unknown quantity of cobalt (Sergiades, 1963). The equipment and buildings for a fully permitted 100 tpd mill are also part of the purchase.
The Project contains 3 stockpiles located where a report produced by Golder & Associates for the previous owner estimated a non NI 43-101 resource at 6,588 tons grading 761 g/t Ag, 0.95% Co, and 0.33% Ni. The Company is in the process of shipping a small amount of the stockpiles to processing facilities for metallurgical and grade testing in preparation for larger shipments. Any revenues from the sale of metals would be used to finance further exploration and for administrative purposes. The mineralized inventory is a historical estimate as defined by National Instrument 43-101. It is important to note that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the issuer is not treating the historical estimate as current mineral resources or mineral reserves. There has been no review of the methods and results of this historical resource estimate by a Qualified Person.
The Company will proceed with mapping and sampling of on surface rock piles and waste dumps remaining from past operations in preparation for a resource estimate later this summer.
Sergiades, A.O., Silver Cobalt Calcite Vein Deposits of Ontario; Ontario Department of Mines, Mineral Resources Circular No. 10, 1968, 498p
Pursuant to the terms of the Purchase Agreement, CobalTech issued to Trio 8,500,000 common shares (the “Payment Shares”) in the capital of the Company at a deemed price of $0.15 per Payment Share and agreed to pay Trio $2,000,000 cash consideration over a period of 24 months commencing November 23, 2016 (the “Closing Date”). The Payment Shares are subject to a voluntary pooling agreement and will be released over a period of 18 months from the Closing Date, with 33 1/3% being released every six months from the Closing Date.
In order to preserve the Company’s cash position, 3,390,000 common shares of the Company (the “Shares”) were issued at a deemed price of $0.40 per Share to Trio pursuant to the terms of a debt settlement agreement, to settle the balance of $1,356,000 outstanding from the above noted $2,000,000. The Shares will be subject to a 4-month hold period from May 1, 2017, pursuant to all applicable securities laws.
Antoine Fournier, P. Geo., M.Sc. is the Qualified Person, as defined by National Instrument 43-101, and he has prepared and reviewed the technical information on this press release.
Contact Person: Mr. Bruce Bragagnolo, CEO
Telephone: (604) 417-9517
CobalTech Mining Inc. is a North American cobalt company with assets in Ontario, Canada. The Company owns a strategically located land package and mill facility adjacent to Cobalt, Ontario, in an area known for its geological setting responsible for unique mineralization composed of quartz-carbonate veins enriched in silver-cobalt-nickel-bismuth-arsenic. The Company also recently acquired the Werner Lake East Cobalt Property near Kenora, Ontario, Canada. These claims are contiguous to Global Energy Metals’ Werner Lake Cobalt Property. CobalTech is committed to operating within the strict environmental, health, and safety framework governed by the e3 Plus regulation put forth by the Prospectors & Developers Association of Canada (PDAC).
ON BEHALF OF THE BOARD
Bruce Bragagnolo. CEO
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.