Global Cobalt Corp. (TSXV:GCO) has entered a standstill agreement with Imperial Mining Holding Limited regarding Global Cobalt’s option agreement to acquire a 100 percent interest in the Karakul Cobalt property and Altai Sister Projects in Russia. The agreement will remain in effect until at least January 31 2015.
As quoted in the press release:
As per the terms of the Option Agreement Definitive Agreement signed in 2013, in order to earn an initial 74.9% interest in the Properties, Global is required to make staged exploration expenditures of at least USD $15 million on the Properties by December 30, 2015. While the Company is compliant in meeting these terms to date, receivership proceedings commenced by Invest Project, LLC against IMHL’s subsidiary AltaiRudaMetall, LLC (“RuMetall”) and the subsequent ruling by the Arbitration Court of the Altai Republic determining that RuMetall is under receivership protection, have among other things, resulted in the Companyyâ?s inability to extend the option agreement at this time. The inability to perform the Company’s obligations under the Option Agreement is due to causes solely beyond its control, and at all times, has been willing to perform the obligations under the Option Agreement. The Company has also been notified by IMHL that the Arbitration Court of the Altai Republic has granted the application to extend the bankruptcy proceedings of RuMetall for six months until April 28, 2015.
Global Cobalt president and CEO, Erin Chutter, said:
We have agreed to enter into the standstill to allow IMHL time to cure issues with respect to title of the Karakul Project without the potential of option termination, which we will retain. We remain committed to Karakul and are hopeful that IMHL will resolve the matter at hand. IMHL has informed us that they are committed to extending the option agreement and will continue to work to resolve their internal issues. Global Cobalt continues to examine opportunities in the cobalt space while working hard to assist IMHL in finding a workable solution to their situation.