Secova Metals Corp. (CVE:SEK) reported that the firm has bought 1095252 B.C. Ltd., a private firm which sole asset remains the Cobalt Bay Property that comprises of 36 claims or almost 1,996 contiguous hectares in Daine Township.
The Cobalt Bay project is sited 102 km north of company’s Eagle River Assignment in the Windfall Lake region of Quebec and 209 kilometers north northeast of its Chenier/ Duvay assignment near Amos making this assignment easily obtainable year-round from Secova’s current assignments. Historic work on the asset has proved that past report has been extremely promising. The company will utilize its expertise in the region to advance a systematic exploration strategy to decide the extent of the prospective cobalt mineralization.
Brad Kitchen, the Chairman and CEO of Secova, reported that the Cobalt Bay asset is a strategic and opportunistic investment that is steady with management’s objectives of increasing the value of the firm for shareholders. The firm will use its expertise in evaluating historic assignments and advancing an exploration program that can efficiently and effectively define a prospective resource. There is an extensive demand for cobalt and the supply chain forces at work of finding non-conflict supply is developing rapidly fueled by the anticipated increase in the production of electric vehicles.
The objective for the firm is to create value for shareholders and they will be driving towards possibly discerning an economically minable deposit. This deal is an arms-length deal in which the firm will issue 6 million common shares by means of a share exchange deal. In connection with the deal, the firm will release a cash finder’s fee of $52,500 to be paid to Anglosphere International Enterprises Limited.
Earlier, Secova reported the closure of a $2.5 million private placement. A part of the proceeds generated will be kept for assessment on the Cobalt Bay Property.