Shares in Supreme Metals Corp (CNSX:ABJ) opened higher on Tuesday after the Canadian explorer signed an arms-length deal to acquire Otter Minerals Ltd.
Supreme will pay C$40,000 in cash and issue 9mln shares (worth around C$990,000) to Otter shareholders as payment.
Should the deal go through as expected, Supreme will get its hands on Otter’s Helfrick property; a high grade cobalt-nickel-silver project in Ontario.
Helfrick consists of eight mining patents covering around 128 hectares.
According to an Ontario Department of Mines Report, a 3.7 tonne bulk sample from the Kerr claim yielded 14.7% cobalt, 9.2% nickel and 9 ounces per tonne of silver.
Cobalt is an important component of electric vehicle batteries and, as a result, demand for the metal is starting to pick up.
“The Helfrick Property has produced some very impressive historic cobalt values but was never the subject of any meaningful follow-up,” said chief executive Bob Komarechka.
“As commodity prices rise, the economics of narrow cobalt veins at high grades and potential areas of significant widths at lower grades, combined with nickel, silver and some potential gold values, make this property an exciting area to apply modern exploration techniques.”
Supreme shares gained C$0.01, or 5%, to trade at C$0.11 in early deals.
Story by ProactiveInvestors