Ontario’s Cobalt Group to Sell Two Cobalt Claims to Australian Firm
Burlington, Ontario-headquartered mineral exploration company Cobalt Group Inc. (CBLT) has entered into an agreement with Australia’s Krakatoa Resources Ltd. to sell two claims in the historic Cobalt-Gowganda silver-cobalt mining district of Ontario. The claims are located peripheral to a cluster of former silver-cobalt mines at Gowganda, 85 km northwest of the town of Cobalt, where mines operated from 1910 to 1989. Krakatoa will purchase the claims (covering 41 mining units) for A$50,000 cash plus 2.5 million Krakatoa common shares for total initial consideration of A$137,500. Krakatoa will also issue to CBLT an option to purchase 2.5 million Krakatoa common shares at 10 cents Australian.