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Global Cobalt Corp. (TSXV:GCO) announced the closing of the previously announced Earn-in Agreement with Imperial Mining Holding Ltd. for up to a 100% interest in mineral resource assets collectively known as the Altai Properties. The Company has also closed a debt financing for proceeds of up to US $4.67 million with IMHL, which will be used to advance the Karakul Cobalt Project and neighbouring Sister Properties in Altai, Russia, repay indebtedness owing by the Company, and for working capital.
As quoted in the press release:
In consideration for the option in the Properties, Global Cobalt will issue to IMHL 8,630,000 common shares (“Consideration Shares”) of Global Cobalt. Global Cobalt will then incur cumulative exploration and development expenditures on the Properties (up to $15 million) to earn-in increasing interest levels in the Properties (see the Company’s news release dated May 28th, 2013).
The Company is also pleased to announce that the TSX Venture has approved the previously announced Loan Agreement between Global Cobalt and IMHL and the Company has closed the aforementioned debt financing. The Loan has a maturity date of two years from closing with proceeds being advanced in three separate tranches, and will accrue interest at 8% per annum, to be paid on a monthly basis.
Global Cobalt President and CEO, Erin Chutter said:
We are very pleased to complete on this strategic acquisition as it positions us as first movers in a historic, mineral rich area of Central Asia with significant exploration and development potential. Coupled with the planned advancement of properties in Altai, Russia and Global Cobalt’s current share structure, management is optimistic about what the second half of 2013 will provide in terms of corporate growth.
Click here to read the Global Cobalt Corp. (TSXV:GCO) press release
Click here to see the Global Cobalt Corp. (TSXV:GCO) profile.
