--TSX Venture: KBLT
--FRA: 27O
Cobalt 27 Capital Corp. ("Cobalt 27" or the "Company") (TSXV: KBLT)(FRA: 27O) announces that it has agreed to acquire a 1.5% Gross Revenue Royalty ("GRR") on the Flemington Cobalt-Scandium-Nickel project located 370 kilometers west of Sydney, in New South Wales, Australia (the "Flemington Royalty") held under option by Australian Mines Ltd. ("Australia Mines").
Photo - ( https://mma.prnewswire.com/media/687411/Cobalt_27_Capital_Corp_Cobalt_27_Acquires_Royalty_on_Flemington.jpg )
"Large-scale nickel cobalt deposits such as the Flemington project represent important, undeveloped sources of cobalt and nickel. With ongoing geopolitical uncertainty in the DRC, which accounts for approximately 65% of current global mined cobalt output, this Australian project provides development targets in a politically stable, mining-friendly jurisdiction," commented Anthony Milewski, Chairman and CEO, Cobalt 27.
"While management's priority and principal focus is on securing cobalt streaming transactions, we continue to opportunistically purchase cobalt royalties as opportunities present themselves," concluded Mr. Milewski.
Flemington Cobalt-Scandium-Nickel Project Highlights
--Maiden Cobalt mineral resource of 2.7 million tonnes at 0.101% of (1.010
ppm) cobalt with only 1% of the Flemington project area tested to date
October 2017.
--SRK Consultants concluded in the October 2017 Maiden Mineral Resource
estimate, that mineralization underlying the Flemington Cobalt-Scandium
Nickel Project is the direct continuation of Clean TeQ Holdings' Sunrise
Project, separated only by a tenement boundary1. Clean TeQ's Sunrise
project hosts one of the highest grade and largest nickel and cobalt
deposits outside of Africa.
--Australian Mines is fast-tracking development of the Flemington Cobalt
Scandium-Nickel Project with an updated mineral resource in 2019 and pre
feasibility study scheduled to commence thereafter; Preliminary
Environmental Impact Study has been completed with final Environmental
Impact Study and Mining Lease Application underway; water allocation has
also been secured for future mining operations.
_______________________
(1) A 2017 Scoping Study of the Flemington Cobalt-Scandium-Nickel Project concluded that the Flemington deposit and Clean TeQ's neighboring Sunrise mineralization constitute the same orebody (a single deposit) with the Flemington deposit representing a direct continuation of the Sunrise ore body , with the deposit separated only by a tenement boundary (SRK Consulting, 2017). This finding was further reinforced by the results of Australian Mines' extensive 239-hole resource extension resource drilling program completed in 2017.
In addition, Cobalt 27 has agreed to acquire a 1.7% GRR on the fully permitted and construction-ready Nyngan Scandium project. The Nyngan project is owned by Scandium International Mining ("SCY") and is located 500km NW of Sydney, 25km west of the town of Nyngan. Outside existing by-product production in Russia and China, the Nyngan project is the most advanced scandium development opportunity globally, with initial off-take contracts in place.
Cobalt 27 acquired the Flemington and Nyngan royalties from Jervois Mining Limited for total consideration of US$4.5 million, comprised of US$1.5 million in cash and US$3.0 million in common shares of the Company which shares will be subject to a four month hold period from the date of issuance in accordance with applicable Canadian securities laws. Completion of the acquisition of the Flemington Royalty is subject to certain customary conditions of closing, including approval of the TSX Venture Exchange, and is expected to be completed shortly. Cobalt 27 has not received any scientific or technical information in respect of the Flemington Cobalt-Scandium-Nickel Project that is not otherwise publicly available. The scientific and technical information in respect of the Flemington Cobalt-Scandium-Nickel Project in this release is derived in its entirety from Australian Mines' and Jervois Mining Limited's publicly filed disclosures, and Cobalt 27 has not independently verified any such information.
In connection with the acquisition TD Securities is acting as financial advisor to Cobalt 27 and Stikeman Elliott LLP is acting as the Company's legal advisor.
About Cobalt 27 Capital Corp.
Cobalt 27 Capital Corp. is a minerals company that offers direct exposure to cobalt, an integral element in key technologies of the electric vehicle and battery energy storage markets. The Company owns over 2,980 Mt of physical cobalt and manages a portfolio of eight royalties. The Company intends to continue investing in a cobalt-focused portfolio of streams, royalties and direct interests in mineral properties containing cobalt, while potentially adding to its cobalt physical holdings when opportunities arise. ---
F
