CBLT Inc. (TSXV: CBLT) had a great 2020 with the stock price up 200%. This is because the Company continues to make deals that add value for shareholders and avoids stock dilution, the latest deal being CBLT’s 6.1% share in today’s CSE listing of Ready Set Gold (CSE: RDY) (‘RDY’), a promising gold exploration play. RDY is anticipated to commence trading on January 12, 2021 under the symbol “RDY” on the Canadian Securities Exchange (CSE).

CBLT Inc. offers investors exposure to multiple Canadian cobalt and precious metals projects, an equity share in RDY and any sale proceeds, and management’s strong track record of deal making.

CBLT owns 1,833,333 shares (approximately 6.1%) of RDY. CBLT has received its first release from escrow of 458,333 free-trading shares. There are three remaining escrow releases of the same number of shares, to take place on or about April 18, June 18 and August 18, all in 2021. RDY’s last financing was carried out at C$0.75 per share, giving CBLT’s holding an implicit value of over $1,300,000. CBLT Inc. stands to benefit by selling some of its RDY holdings as it comes out of escrow to mitigate downside risk and holding on to the remainder to ride the ‘gold and Hemlo’ wave.

The Ready Set Gold announcement above gives a good summary of the company quoted below:

• “A basket of gold projects in the Hemlo area in Ontario with a focus on high-grade gold exploration and development potential, including the 100% owned Northshore Gold Project hosting Indicated Resources of 391,000 oz Au in 12.36 million tonnes at a grade of 0.99 g/t and Inferred Resources of 824,000 oz Au in 29.58 million tonnes at 0.87 g/t Au using a cut-off grade of 0.50 g/t Au. (NI43-101 Technical Report – 2014).
• A proven team of public company executives and explorers focusing on profitable exits for shareholders.
• Low share float of 29.8 million shares outstanding and 37.1 million shares fully diluted.”

Note: Bold emphasis done by the author.

The background on this deal involved CBLT Inc. selling its 56% share of the Northshore Gold Property Joint Venture to Omni Commerce Corp. (“Omni“). For the sale CBLT Inc. received $350,000 in cash and $1,100,000 in common shares of Omni. Subsequently RDY formed out of an amalgamation agreement dated August 12, 2020, between Omni and RDY, effectively meaning CBLT Inc. became a RDY equity holder.

A deeper look at Ready Set Gold (‘RDY’)

RDY states that its mission is to discover, expand, develop high grade, economic gold deposits on proven and prolific greenstone belts in Canada with an initial focus on Ontario. As mentioned above in the CBLT announcement RDY has already discovered significant gold ounces, or as reported in their presentation a total of 1.22 million ounces. The indicative market cap for the initial listing is C$22 million fully diluted, which gives a market cap per ounce of US$18/oz, well below most competitors. Of course RDY is a new listing and has a significant percentage of their gold still in the lower Inferred category, so this must be taken into consideration when comparing to peers.

2021 will see Phase 1 drilling of 3,000 meters of infill drilling and upgrading of the Inferred Resource. This will be followed by Phase 2 drilling of another 3,000 meters, including of new targets. This should lead to plenty of news flow in H1 2021.

Ready Set Gold’s 3 key gold projects – Northshore, Hemlo Eastern Flanks, and Emmons Peak

Ready Set Gold company highlights

Source: RDY company presentation

About CBLT Inc.

CBLT Inc. is a project generator with a focus on quality cobalt projects in safe jurisdictions such as Canada. CBLT  has numerous projects in Canada. CBLT’s flagship is the Copper Prince Project located in Falconbridge Township, in the Sudbury Mining District of Ontario, Canada. The Project has Cu-Ni-PGM and gold occurrences. Sample 616311 found 54.3g/t Au and 5,020 ppm (0.502%) Co. CBLT also owns the Chilton Cobalt Project in the Grenville Subprovince in Quebec, which contains two areas with large nickel-copper-cobalt-chromium findings. In total CBLT has its hands in over 10 projects in Canada. You can read more in my past articles here and here.

Closing remarks

CBLT Inc. still has a low market cap of only C$4.7 million despite their tremendous stock price performance in 2020. By buying into CBLT Inc. investors gain exposure to over 10 projects in Canada with base metals (Co, Ni, Cu) and precious metals potential (Au, Ag, PGMs), some equity exposure in Ready Set Gold which is due to list today, and management’s deal making skills that has a proven track record of adding value for shareholders without stock dilution. Be quick!

InvestorIntel’s Tracy Weslosky speaks with Peter Clausi, President, CEO and Director of CBLT Inc. (TSXV: CBLT) about the sale of CBLT’s Northshore Gold Property to Omni Commerce where CBLT ended up being the largest shareholders in Omni. “CBLT purchased a portfolio of four mining assets two years ago,” Peter said. “Paid roughly a million dollars for it. We just sold one of those assets for $1.5 million.”

“We do mineral exploration, but we also do opportunistic M&A,” Peter added. “Any property that is good enough to buy is good enough to sell if you can make profit for the shareholders.” He added, “We have been buying properties inexpensively and then selling them to bidders who could not get their hands on the properties in the first place, and making significant profit for the shareholders.” He continued, “In 2016-17 we generated over a million dollars in revenue for the shareholders against acquisition cost of about a $160,000.”

To watch the complete interview, click here

Disclaimer: CBLT Inc. is an advertorial member of InvestorIntel Corp.

Well-managed small cap continues successful M&A activity

Project generator CBLT Inc. (TSXV: CBLT) closes yet another deal. This time CBLT Inc. has closed the sale of its 56% share of the Northshore Gold Property Joint Venture to private company Omni Commerce Corp. (“Omni“). For the sale CBLT Inc. has been paid $350,000 in cash and $1,100,000 in common shares of Omni.

For those investors not familiar with CBLT, it is a well-managed small cap company that focuses on making cash positive deals to avoid stock dilution while at the same time also gaining equity share exposure in the new venture. The strategy is effectively building stakes in junior cobalt and precious metal companies and projects in Canada in addition to owning several of their own projects.

CBLT to retain significant equity in Omni which plans to immediately develop the Northshore Gold Property

What is positive about the Omni deal is CBLT becoming a significant shareholder in Omni. This is because Omni intends to acquire the remaining 44% interest of the Northshore Gold Property from Balmoral Resources Ltd. CBLT says that it “has also been advised by Omni that Omni has submitted a listing application to the Canadian Securities Exchange,” and that “Omni intends to change its name to ‘Ready, Set, Gold!’ to better demonstrate its business focus, and that Omni intends to aggressively develop Northshore Gold immediately.”

CBLT Inc.’s CEO Peter M. Clausi commented that the company is “happy with our equity position which gives us passive ongoing exposure to gold and to Omni’s development success. It also allows us to continue our plan to create shareholder value by continuing with strategic M&A activity, as with Northshore Gold, and by developing our Canadian mining assets. We expect to be in the field at Big Duck Lake, also in Hemlo, later this year.”

The Northshore Gold Property sits on the Schreiber-Hemlo Greenstone Belt and hosts the Afric Zone, about 115 kms west of Hemlo and 200 kms east of Thunder Bay, Canada. Indicated Resources are 391,000 ounces of gold, with an additional 824,000 ounces of inferred resources, all found within the Afric Zone.

Past drilling programs have been undertaken in the region over the last few years, including some high grade intercepts of 12.49 g/t over 33.2 metres and 4.35g/t over 14.6 metres. The Afric Gold Zone continues to demonstrate significant mineralized widths to depth, highlighted by an intercept of 124.50 metres grading 1.05 g/t gold in hole WB-18-54. The Resource has a broad mineralized envelope which includes a high grade core, which returned 7.00 m grading 11.15 g/t gold, including 1.00 m grading 56.50 g/t gold. The deposit, and the high grade core, have now demonstrated continuity to a little over 250 vertical metres depth and remain open.

Northshore Property – Afric Zone cross-sectional view showing some drill intercepts

Source

About Cobalt Inc.

CBLT Inc. is a project generator with a focus on quality cobalt projects in safe jurisdictions such as Canada, ideally associated with valuable by-products such as base (Ni, Cu) or precious metals (Au, Au, PGMs). CBLT Inc.’s has numerous projects and JVs in Canada.

CBLT’s flagship is the Copper Prince Project located in Falconbridge Township, in the Sudbury Mining District of Ontario, Canada. The Project has Cu-Ni-PGM and gold occurrences. Sample 616311 found 54.3g/t Au and 5,020 ppm (0.502%) Co.

CBLT’s also owns the Chilton Cobalt Project in the Grenville Subprovince in Quebec, which contains two areas with large nickel-copper-cobalt-chromium findings.

CBLT Inc. has a low market cap despite having over 12 projects and strong past deal flow success

Source

Closing remarks

For investors wanting a well-managed exploration and deal project generator company with a very low market cap, then CBLT Inc. is well worth a long look. With a market cap of only C$3.26m, investors gain exposure to over 12 projects with base metals (Co, Ni, Cu) and precious metals potential (Au, Ag, PGMs), as well as equity exposure to other small explorers such as Omni. The potential valuation proposition is outstanding. The outcome for investors will depend on continued exploration and deal success. One to follow closely.