TORONTO, March 22, 2018 /CNW/ - Cobalt Blockchain Inc. (the Company or COBC) (TSXV: PET transitioning toTSXV: COBC at the opening of business March 23, 2018) is pleased to announce that it has entered into two definitive joint venture agreements for cobalt / copper concessions in the Democratic Republic of the Congo (DRC) totalling over 48 square kilometers. The Company has also submitted an application to the DRC Ministry of Mines for a cobalt / copper trading and export license.
"The properties announced today represent the initial strategic concessions for our DRC cobalt portfolio," said Peter Hooper, Chief Executive Officer of the Company. "Beyond acquiring or joint venturing exploration projects with the potential for large-scale, high-grade cobalt deposits, our strategic focus also includes adding projects that have near-surface mineralization and where we can generate early cash flow by responsibly engaging with artisanal and small-scale (ASM) producers. More than twelve percent of global cobalt production currently originates from ASM operations in the DRC and our announcement today represents another step forward in delivering certified, ethically-sourced cobalt to the market in the near-term."
DRC Cobalt / Copper Concessions
Cobalt Blockchain Inc. announces a 70% interest in Alpha Cobalt SAS, a joint venture between the Company and a private local partner. The two contiguous concessions controlled by Alpha Cobalt SAS contain 48 carrés, totalling 40.8 square kilometers. The properties are located about 50 kilometers to the east of Kolwezi and 10 kilometers from an operating mine at the Tenke Fungurume project, one of the world's largest cobalt / copper deposits.
The Company also announces an 80% interest in Cobalt Blockchain SAS, a joint venture between the Company and a private local partner. The two contiguous concessions controlled by Cobalt Blockchain SAS contain 9 carrés, totalling 7.6 square kilometers. The properties are located about 50 kilometers from Lubumbashi in an area with active artisanal and small-scale cobalt / copper mining.
Cobalt Blockchain Inc. is actively engaged in negotiations on several other cobalt / copper properties and aims to announce further acquisitions or joint ventures when definitive agreements are concluded. While these discussions are ongoing, the Company will only disclose terms and conditions of acquisitions and joint ventures when necessary. Considerations for the joint venture agreements announced above are not deemed by the Company to be material.
DRC Cobalt / Copper Trading and Export License
The Company owns a 100% interest in an existing metals trading business specializing in sourcing conflict-free minerals from artisanal and small-scale mines in the DRC. The Company is currently licensed to trade and export tin, tantalum and tungsten and has filed an application with the federal Ministry of Mines for a cobalt / copper trading and export license. These licenses allow the Company to establish regional buying depots, process minerals in-country and export these metal concentrates internationally.
Artisanal and Small-Scale Mining (ASM) in the DRC
An estimated two million people are directly employed in the ASM sector in the DRC. Currently 100% of the country's tin, tantalum and tungsten, and around 20% of cobalt and copper originates from ASM production. The DRC Mining Code addresses ASM operations and efforts are on-going to further formalize and regulate the sector. Metal concentrates are produced using simple processing techniques including gravity separation or optical sorting. For example, tin concentrate grades from ASM operations typically range between 60 – 70% tin, while cobalt concentrate grades range between 1 – 20% cobalt.
About Cobalt Blockchain Inc.
Cobalt Blockchain Inc. (COBC) (TSX-V:PET, transitioning to TSX-V:COBC at the opening of business March 23, 2018), previously known as Peat Resources Limited, is a Canadian resource company expanding its exploration and development business to include cobalt assets in the Democratic Republic of the Congo (DRC). COBC owns 100% interest in an existing metals trading business specializing in sourcing conflict-free minerals from artisanal and small-scale mines in the DRC. Leveraging its experience with existing mineral traceability systems, COBC is developing a distributed ledger-based certification platform to provide manufacturers and end-users greater certainty of provenance and further assurance that all minerals procured are ethically-sourced. Senior management have over twelve years of experience working in the DRC and have a proven international track record in exploration success and the trading of certified conflict-free, child-labour-free minerals.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in forward-looking statements. These include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review registered filings at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Peat Resources Limited
For further information: Lance Hooper, President and Chief Operating Officer, Telephone: +1-416-500-3670, Email: email@example.com, Website: www.cobc.co