PERTH (miningweekly.com) – ASX-listed junior Blackstone Minerals has signed a definitive agreement to acquire the Little Gem cobalt/gold project, in British Columbia.
Under the terms of the agreement, Blackstone will issue Cobalt One 25-million fully paid ordinary shares, subject to shareholder approval. A further eight-million performance shares, convertible into one fully paid ordinary share each, will also be issued to certain Cobalt One shareholders.
Furthermore, Blackstone will assume all Cobalt One’s obligations under an existing option agreement, including C$700 000 of staged option payments over the Little Gem project.
In addition, Blackstone will also be liable for a 20% net profit interest and a 1% net smelter return on the first 10 000 t of ore mined from the project area, payable to the current owner, as well as a 2.5% net smelter royalty thereafter.
“Having been on site at Little Gem, I am very keen to get stuck into this potentially exceptional high-value per tonne opportunity,” said Blackstone technical director Andrew Radonjic.
“We are well located in a mining centre in a low geopolitical risk country with nearby infrastructure to support cobalt-gold development arising from exploration success. The company has an exceptional exploration team that is well credentialed to add value to this project, and therefore to the Blackstone shareholder.”