Kapuskasing Gold Corp (CVE:KAP) has finalized a non-binding letter of intent to buy via asset purchase a 100% stake in eight separate assets sited in the province of NL. The assets are being bought for their battery technology metal prospect, more specifically Vanadium and Cobalt. Five of the assets are sited in Newfoundland and 3 are in Labrador.
The province has upheld its status as being one of the top jurisdictions for new findings in Canada, and for preserving a very pleasant pro-mining environment and an outstanding rebate arrangement to explorers.
The update
The acquisition of 8 projects, puts Kapuskasing Gold and its investors in the battery technology metals industry. Management considers that demand and supply dynamics are indicating shortfalls in both vanadium and cobalt in the imminent years. Many of the assets are believed to host Cobalt, Copper and or Vanadium mineralization and numerous advantage from historic exploration counting diamond drilling and channel sampling.
The assets are termed the: Kings Court project, Alexis Co project, the Cape Charles Co project, Lady Pond project, Indian Head V project, Hayes V project, Ross Lake V project, Iron Mountain V project.
Kapuskasing Gold has finalized a non-binding LOI whereby company can purchase a 100% stake in all of the assets for total consideration of 7.5 million shares, and a onetime cash payment of $5,000. The Vendors will retain a 3% NSR interest, or where appropriate, a 3% NPR. At the same time, the firm retains the alternative to buy back 2% of the NPR (or NSR) for $1 million. A formal option deal will follow upon closure of due diligence, which is expected to be closed by the end of this month.
These are major strategic mineral assets in one of the top exploration and mining jurisdictions in North America. Vanadium and Cobalt are minerals pursued after now, and may be main minerals for upcoming years.
