Cruz Capital Corp to Acquire Six Cobalt Prospects
July 25, 2016 (Source) — Cruz Capital Corp (TSXV: CUZ) (OTC: BKTPF) has entered into a share purchase agreement with Cobalt Locaters Inc. The assets of Cobalt Locaters Inc. consist of 6 separate cobalt prospects. 4 are located in Ontario and 2 are in British Columbia. Cruz will now hold 7 separate cobalt prospects in Canada.
Jim Nelson, President of Cruz Capital states, “We are extremely pleased to be able to acquire, within one transaction, what we feel is the best set of underdeveloped cobalt-first assets situated in Canada. Management’s plan would be to further these prospects along and either develop them internally or look to joint venture them. We believe we are at the earliest stages of a significant Cobalt boom and we feel all these assets in one company will put Cruz at the forefront of this exploding sector. Cruz has a tight share structure with only approximately 8 million shares outstanding after this transaction. Our goal is to make Cruz into the premier cobalt asset project generator in North America.”
According to a MetalBulletin story dated July 18, 2016, “…Cobalt metal prices have been rising in recent weeks on the positive sentiment created by strong forward demand from the super-alloys sector as well as the anticipation of higher prices that has resulted from an expected surge in production of electric vehicles.” The cobalt price has recently traded to a 6 month high.
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According to an interview with Chris Berry of House Mountain Partners on June 20, 2016 he states “…I think one of the things that’s surprised me is how most people haven’t woken up to the opportunity. Again, we can get into a lot of the details about battery and battery metals and how important lithium is, or cobalt is or graphite is, but I think cobalt is really sort of an undiscovered opportunity right now and hopefully that will change soon.”
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The acquisition terms to acquire Cobalt Locaters Inc are cash of $20,000 and the issuance of 1,600,000 shares of the Company to four arm’s length parties. Cruz’s 2 BC properties are 100% owned and the 4 Ontario prospects are 50%. The acquisition is subject to execution of formal documentation and TSX Venture approval.
Cruz has also granted 500,000 incentive stock options to directors, officers and consultants at an exercise price of .35 cents per share for six months. The options have been granted in accordance with the company’s stock option plan.
Greg Thomson PGeo has reviewed this news release.
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