Blackstone Minerals Ltd’s (ASX:BSX) shares were trading circa 6% higher intra-day after executing an agreement to acquire the Little Gem cobalt-gold project, located in British Columbia, Canada.
The project hosts high grade cobalt and gold sulphide mineralization, within a well-endowed and high-grade gold mining district.
The consideration for the acquisition is 25 million Blackstone shares, currently valued at circa $6.75 million.
Blackstone is ready to commence exploration immediately post-acquisition with the preparations on site well advanced.
The past drilling results from the project returned some exceptional cobalt and gold assays, including 1.8 metres at 2.4% cobalt and 112 g/t gold, 3.3 metres at 1.4% cobalt & 12.3 g/t gold.
It is worth noting that cobalt contributes up to 60% of the value of lithium Ion batteries which in turn accounts for 42% of the demand for cobalt.
The cobalt price has risen significantly from US$22,000 per tonne to US$61,000 per tonne over the last 21 months.
Importantly, lithium ion battery is projected to become the world’s most significant source of power with the use in electric vehicles being the key driver.
Blackstone is well funded, with a cash position of $2.6 million as at 30 June 2017.
Source: http://www.proactiveinvestors.com.au
