Canada Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) has closed a deal to acquire PolyMet Labs, the only facility in the Northern Ontario Silver-Cobalt district that combines bullion pouring, bulk sampling, commercial assaying and e-waste processing.
The company’s newly-formed wholly-owned subsidiary, Temiskaming Testing Laboratories Inc. (TTL), and PolyMet Resources Inc. have entered into a definitive asset purchase agreement pursuant to which TTL has agreed to purchase substantially all of the assets of PolyMet.
Under the terms of the Purchase Agreement, Canada Cobalt will issue shares valued at a total consideration of approximately C$310,684. TTL will also assume certain outstanding obligations of PolyMet in an amount of approximately C$339,316.
President and Chief Executive Officer of Canada Cobalt, Frank Basa, said the transaction, completed at an opportune time in the precious metals cycle, provides the company with multiple immediate and long-term advantages as a fully integrated leader in Canada’s Silver-Cobalt heartland.
“The lab and mineral processing facility in the town of Cobalt, within just 50 m of a rail line and just a short distance from Canada Cobalt’s Castle and Beaver properties, will also become the new home of the Company’s environmentally friendly Re-2OX Process,” Mr Basa said.
Canada Cobalt has 100% ownership of the Castle mine and the 78 sq. km Castle Property with strong exploration upside in the prolific past producing Gowganda high-grade Silver Camp of Northern Ontario.
With underground access at Castle, a pilot plant to produce cobalt-rich gravity concentrates on site, and a proprietary hydrometallurgical process known as Re-2OX for the creation of technical grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations, Canada Cobalt is strategically positioned to become a vertically integrated North American leader in cobalt extraction and recovery while it also exploits a powerful new silver-gold market cycle.