Secova Metals (SEK-V) Feb 22, '17 acquires company holding Cobalt Bay property
Secova Metals Corp. has acquired 1095252 B.C. Ltd., a private B.C. company whose sole asset is the Cobalt Bay property that consists of 36 claims or approximately 1,996 contiguous hectares in Daine township, Quebec.
The Cobalt Bay project is located 102 km north of Secova's Eagle River Project in the Windfall Lake area of Quebec and 209 km north northeast of its Duvay/Chenier project near Amos making this project easily accessible year-round from the Company's existing projects. Historic work on the property has shown that past results have been very promising, including drilling results from 1957 when the New Jersey Zinc Company returned 0.068% cobalt over 4.5 meters, including 1.5 meters of 0.17% cobalt. Secova will use its expertise in the area to develop a systematic exploration plan to determine the extent of the potential cobalt mineralization.
"The Cobalt Bay property is an opportunistic and strategic investment that is consistent with management's goals of enhancing the value of the company for our shareholders," stated Brad Kitchen, C.E.O. and Chairman of Secova Metals Corp. "The Company will use its expertise in assessing historic projects and developing an exploration plan that can effectively and efficiently define a potential resource. There is a huge demand for cobalt and the supply chain dynamics of sourcing non-conflict supply is growing rapidly fuelled by the expected surge in the production of electric vehicles. Value creation for our shareholders is our goal and we will be driving towards potentially discovering an economically minable deposit be it in gold at Duvay/Chenier& Eagle River or cobalt at the Cobalt Bay property."
The acquisition is an arms-length transaction in which the Company will issue 6.0 million common shares by way of a share exchange agreement. In connection with the transaction, the Company will issue a cash finder's fee of $52,500 payable to Anglosphere International Enterprises Limited.
Secova announced yesterday the completion of a $2.5 million private placement. A portion of the proceeds raised will be allocated for exploration on the Cobalt Bay Property.
The issuance of the acquisition and the finder's fee of common shares are subject to TSX Venture Exchange approval.
About Secova Metals Corp.
Secova Metals Corp. is a Canadian gold exploration company focused on building a strong asset base through exploration of undervalued gold projects in Canada. Management has demonstrated expertise in advancing gold exploration projects into acquisition targets, most notably in the province of Quebec. Secova has the exclusive right and option to acquire from Tres-Or Resources Inc. ("Tres-Or"), an undivided 65% right, title and interest in the contiguous Duvay and Chenier Gold Projects. Secova can earn up to 90% of the property (an additional 25% ownership) by funding a pre-feasibility study after the initial exploration expenditures to bring the property towards production. The Company has a total contiguous land package of 174 claims covering over 7,766 hectares (17,458 acres) of land. Duvay/Chenier is located in the Abitibi gold belt, one of Quebec's premier mining jurisdictions. The Company has plans to advance the development of Duvay/Chenier as well as seek other avenues of growth through acquisition and mergers. The Company also has 100% ownership of the Eagle River project which is adjacent to and on-trend to several gold projects in the Windfall Lake district of Urban Barry in Quebec. The Company wholly owns the Cobalt Bay property which is 1,996 hectares and just 102kms north of its Eagle River project in Quebec
For more information on Secova Metals Corp. please contact Morgan Good, Secova's President, at morgan.good@secovametals.com and Tel: +1 604-715-4751 or visit the website at www.secovametals.com for past news releases, media interviews and opinion-editorial pieces by CEO and Chairman Brad Kitchen.
On Behalf of the Board of Directors,
SECOVA METALS CORP.
"Morgan Good"
President and Director
Tel: +1 604-715-4751
info@secovametals.com |
