CBLT to sell one block, op­tion two to Win­mar

Stockwatch Daily - - MINES & METALS - Mr. Peter Clausi re­ports

CBLT INC. has en­tered into a bind­ing agree­ment with Win­mar Re­sources Ltd. to ad­vance three claims now owned by CBLT in the his­toric Cobalt-Gow­ganda sil­ver-cobalt min­ing district of On­tario.

Win­mar is an Aus­tralian

min­ing com­pany listed on the Aus­tralian Stock Ex­change un­der the sym­bol WFE, led by what CBLT be­lieves to be a qual­ity man­age­ment team.

The claims are lo­cated pe­riph­eral to a clus­ter of for­mer sil­ver-cobalt mines at Gow­ganda, 85 kilo­me­tres north­west of the town of Cobalt, which mines op­er­ated from 1910 to 1989. Pro­duc­tion from this re­gion to the end of 1969 was 60.1 mil­lion ounces of sil­ver and 1.4 mil­lion pounds of cobalt.

Cobalt is an manda­tory in­gre­di­ent in the cath­ode of lithium-ion bat­ter­ies, with­out which elec­tri­fi­ca­tion of the mo­tor ve­hi­cle in­dus­try can­not take place. Cobalt is in a global deficit po­si­tion and in CBLT’s view re­quires a Cana­dian eth­i­cal sup­ply chain to al­le­vi­ate the hu­man suf­fer­ing un­der way in the Congo.

Un­der the agree­ment:

• Win­mar must im­me­di­ately de­liver a re­fund­able de­posit of $15,000 (Aus­tralian) to CBLT which de­posit be­comes non-re­fund­able on the com­ple­tion of Win­mar’s due dili­gence re­view and will then be cred­ited against the purchase price on clos­ing of the Bloom Lake sale, as per be­low.

• Win­mar will purchase the Bloom Lake claim block for con­sid­er­a­tion of $50,000 (Aus­tralian) cash (less the de­posit) plus $50,000 (Aus­tralian) in Win­mar com­mon shares is­sued to CBLT at a price of 0.3 Aus­tralian cent. Clos­ing is ex­pected to take place in early Jan­uary, 2018.

• Win­mar will make an im­me­di­ate pay­ment to CLBT of $20, 000 (Au stra lia n) cash, for which Win­mar ac­quires a 12-month op­tion to purchase ei­ther or both the United Reef claim block and the Cal­cite Lake claim block.

• Win­mar can ex­er­cise an op­tion to purchase ei­ther or both of the United Reef and Cal­cite Lake claim blocks by pay­ing to CBLT $50,000 (Aus­tralian) cash per claim block and $50,000 (Aus­tralian) in com­mon shares per claim block, to be is­sued to CBLT at a share price equal to Win­mar’s clos­ing share price on the Aus­tralian Stock Ex­change on the day the op­tion or op­tions are ex­er­cised, pro­vided that the is­sue price of such Win­mar com­mon shares will not be any lower than 0.3 Aus tralian ce nt per share.

• Each op­tion vests upon the com­ple­tion of at least $50,000 (Cana­dian) of ex­plo­ration ac­tiv­ity on each claim block dur­ing the term of the op­tion.

• The op­tions im­me­di­ately lapse if trad­ing in Win­mar’s shares is halted for seven con­sec­u­tive trad­ing days.

Win­mar has ad­vised CBLT that it in­tends to com­plete an ini­tial ground re­con­nais­sance of the Bloom Lake claim block dur­ing De­cem­ber, 2017, us­ing a lo­cal in­de­pen­dent ge­ol­o­gist. CBLT in­tends to pro­vide what­ever rea­son­able co-oper­a­tion it can to Win­mar to ac­cel­er­ate the ex­plo­ration of the claims. CBLT has un­der­taken to man­age, un­der Win­mar’s di­rec­tion, the field pro­grams on the claims at cost plus a 10-per-cent man­age­ment fee payable to CBLT.

“We have been ap­proached by sev­eral com­pa­nies look­ing to part­ner into our Gow­ganda as­sets,” said Peter M. Clausi, CBLT’s chief ex­ec­u­tive of­fi­cer. “We have a high de­gree of con­fi­dence that the Win­mar team is the right team to ad­vance these three as­sets. The world needs Canada’s cobalt.”

Fol­low­ing clos­ing, CBLT will con­tinue to hold in­ter­ests in the Gow­ganda area through its 100-per-cent own­er­ship of Corkill/Law­son and Farr.

CBLT is car­ry­ing out sur­face work at its main gold/cobalt as­set in Sud­bury, Ont., with a view to car­ry­ing out a drill pro­gram in 2018. The drone aerial sur­vey con­tem­plated for this year at Chilton cobalt in Que­bec can­not be flown un­til the lo­cal weather is more suit­able.

CBLT is a Cana­dian min­eral ex­plo­ration com­pany with a proven lead­er­ship team, tar­get­ing cobalt in re­li­able min­ing ju­ris­dic­tions. CBLT con­tin­ues to be a project gen­er­a­tor and an ef­fi­cient stew­ard of its share­hold­ers’ cap­i­tal.

We seek Safe Har­bor.

Ju­dith Catharine Baker, Peter Michael Clausi, Brian Lorne Crawford, John Parker Mas­ters, Ed­ward James Lothean Stringer

(CBLT) Shares: 48,985,359

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