One of the biggest trends in 2020 is the US moving to secure supply of critical materials such as the battery materials, including the hardest of all to source, cobalt. Combine this with the benefits of safe haven assets such as silver and gold, and you get a perfect combination of safety and growth. One Canadian company has built a large portfolio of Canadian located assets with a focus on cobalt as well as precious metals such as gold, silver, nickel, copper, and PGMs. Even better the Company is still trading at a fraction of its future potential value, assuming it succeeds in the long run.
That company is CBLT Inc. (TSXV: CBLT).
CBLT Inc. is a project generator with a focus on quality cobalt projects, ideally associated with valuable by-products such as base (Ni, Cu) or precious metals (Au, Au, PGMs), in safe jurisdictions such as Canada. The Company prioritizes shareholders interests by minimizing stock dilution by bringing in cash from M&A deal flow and JV deals. CBLT is a believer in building up new ethical sources of cobalt that will be in high demand as the EV boom accelerates in future years. The Company prefers projects with poly-metallic potential or at least cobalt and some precious metals.
CBLT Inc.’s has numerous projects and JVs in Canada.
CBLT’s Copper Prince Project is their flagship project located within Falconbridge Township, in the Sudbury Mining District of Ontario, Canada. The Property is comprised of sixteen contiguous patented mining claims totaling 256 ha and has Cu-Ni-PGM and gold occurrences. Sample 616311 found 54.3g/t Au and 5,020 ppm (0.502%) Co. Other grab samples included sample 616313 that returned 12.8 g/t Au, 0.47% Co, and sample 616318 that returned 4.31 g/t Au, 0.44% Co.
CBLT’s Chilton Cobalt Project is in the Grenville Subprovince in Quebec and contains two areas with large nickel-copper-cobalt-chromium findings. CBLT is currently in the permitting process for excavation and a maiden drill program.
CBLT Inc.’s projects
Location map of some of CBLT Inc’s Ontario Canada projects
In 2018 CBLT sold the Bloom Lake Property to Winmar Resources Ltd (ASX: WFE) in a deal that saw CBLT retain a 10% management fee, as well as 16 million shares in Winmar. Winmar’s shares are currently suspended as they seek approval to buy half of a cobalt processing facility in the DRC. Bloom Lake assay results have confirmed high-grade copper-cobalt mineralization with anomalous gold and nickel. The most notable was Sample 853028, taken south of the No. 1 audit, which assayed 6.84% cobalt, 0.422 g/t gold, 0.58% copper and 1.56% nickel.
On June 1, 2020 CBLT Inc. announced that they have sold their 56% joint venture share in Northshore Gold for cash and equity to Omni Commerce Corp. The total consideration payable to CBLT in respect of the transaction is $1,450,000 consisting of: Cash consideration of $350,000 and stock consideration of $1,100,000 payable by the issuance of post-consolidation common shares in Omni’s capital on closing.
There is little doubt that as the EV revolution accelerates the world will need more cobalt, especially from safe countries such as Canada.
Investing into CBLT Inc. gives investors exposure to a very large number of Canadian cobalt and other valuable metals (gold, silver, nickel, copper, PGMs) exploration projects, as well as equity exposure to several other explorers that have bought projects from CBLT, such as Winmar and Omni.
Due to management’s focus to avoid stock dilution by successful deal flow, CBLT Inc. has a small share register of just 70.24 million shares outstanding. The current market cap is just C$2.1 million. This means that investors that are willing to invest early and show some patience have the potential to be highly rewarded for taking the risk of an early stage smaller cap mining stock. One to watch.