Boreal Metals Acquires Additional Historic Cobalt Property in Sweden Bringing Portfolio to Total of 6 Historic Nordic Properties - Video Available on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - February 13, 2018) - Boreal Metals (TSXV: BMX) (TSXV: BMX.WT) has executed a definitive agreement with EMX Royalty Corporation (TSXV: EMX) (NYSE MKT: EMX) to acquire an additional cobalt property in Sweden. Boreal Metals, through its newly created, wholly owned subsidiary, Boreal Energy Metals Corp. is acquiring the 2,383-hectare Guldgruvan cobalt project.
With 6 properties now in its portfolio, this latest acquisition follows the company's growth strategy of acquiring past producing projects, that have undergone only limited modern exploration.
The project is accessible year-round, with robust infrastructure including paved roads, power, and skilled labour in nearby municipalities. Cobalt, copper, and nickel were mined on the property between the 1600's to 1750's, which is noted for the region to first discover and recognize nickel as an element in 1751.
The exploration license contains numerous historical workings, test pits and shallow drill holes, in addition to 5 major mining sites, including the historic Los Cobalt Mine, one of the better known historic cobalt producers in the region. The cobalt-bearing occurrences define a series of parallel north-northwest trending zones on mineralization that extend for at least 6 kilometres across the claim package. These samples from dump material on the property show cobalt, copper and nickel mineralization, with gold, silver, zinc, and lead also present in zones of mineralization.
Under the terms of the acquisition, Boreal Energy will issue 5.9% equity ownership to EMX Royalty Corporation. Boreal Energy will have the continuing obligation to issue additional shares at no cost to allow EMX to maintain its 5.9% interest until the subsidiary has raised CDN$3 million in equity. EMX will also be granted a NSR and a small annual advance royalty starting at US$20,000 per year. For full details of the acquisition, please refer to the company's news release.
Karl Antonius, President and CEO, stated: "Boreal continues its exploration project growth strategy with the addition of the Guldgruvan Project. Through the acquisition of two significant past producing cobalt assets, Boreal is well positioned in the region as Scandinavian Battery Companies are moving forward to lead Europe's emerging battery production sector. Boreal believes the acquisition delivers significant benefits to its shareholders. Guldgruvan complements the previously announced acquisition of Modum, which combined further builds the foundation for Boreal's strong base metal and cobalt exploration in Scandinavia."
The Nordic region, with excellent infrastructure including deep-water ports with year-round ice-free harbors, is host to 26 active mines and 7 smelters.
Cobalt has many uses, but over half of the total global demand comes from the chemical sector which uses cobalt, among other applications, for metallic cathodes in rechargeable batteries.
Northvolt has selected a location in northern Sweden to build Europe's biggest battery factory. Northvolt and Scania, a division of Volkswagen truck & Bus, announced on January 25th, they have jointly agreed to develop and commercialize battery cell technology for heavy commercial vehicles. Northvolt plans on using locally sourced raw materials, especially from the mineral-rich Nordic peninsula.
Boreal Metals, which began trading on the TSX Venture Exchange on November 21st, is trading at $0.29.
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