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European Cobalt (ASX:EUC) signs exclusive option agreement to purchase Edleston Gold Project
  • European Cobalt (EUC) has signed an exclusive option agreement to purchase the Edleston Gold Project in Ontario, Canada
  • The company signed the agreement with 55 North Mining for a 30-day exclusive option period for CDN$100,000 (around A$108,000)
  • European Cobalt can buy the project for CDN$650,000 (A$704,000) in cash and issue 100 million shares, which is subject to a three month escrow period
  • Managing Director Rob Jewson considers the project to be a great exploration opportunity
  • Before the deal is officially completed, a period of due diligence is being undertaken
  • European Cobalt is up 45 per cent on the market this morning, selling shares for 2.9 cents each

European Cobalt (EUC) has signed an exclusive option agreement to purchase the Edleston Gold Project in Ontario, Canada.

The company signed the agreement with an unrelated party, 55 North Mining, for a 30-day exclusive option period for CDN$100,000 (roughly A$108,000).

European Cobalt can buy the project for CDN$650,000 (roughly A$704,000) in cash and issue 100 million shares, which is subject to a three month escrow period.

The project area is 64.33 kilometres squared and is located within the Cadillac-Larder Fault Zone, which has hosted over 75 million ounces of gold.

A due diligence program is currently being undertaken before the deal can formally go through. This includes legal due diligence on the land, reprocessing of IP (induced polarisation) and magnetic survey data, 3D geological modelling, submission of drill permits, and more.

Prior owners of the project will retain a two per cent net smelter royalty.

Managing Director Rob Jewson believes Edleston is a great exploration opportunity.

"The work done to date has outlined a significant mineralised system which can be effectively targeted using induced polarisation (IP) geophysics," he said.

"To date, only 540 metres of strike has been tested along a corridor with multiple moderate to strong IP conductors delineated along a total strike exceeding 3,300 metres," he added.

A total of 56 diamond drill holes have been completed at Edleston so far. Results include 5.3 metres at 81.39 g/t of gold from 110 metres, including 0.9 metres at 433.97 g/t of gold from 115.4 metres.

“Through my prior involvement in the discovery of Edleston, I am delighted at the opportunity to implement the exploration required to define the significant potential of this large mineralising system," Non-Executive Technical Director Dale Ginn said.

"The mapping and aeromagnetic interpretation we completed previously on the project has shown that there is up to 10 kilometres of strike prospective lithologies which are yet to be tested in addition to the priority IP targets already defined," he explained.

European Cobalt is up 45 per cent on the market this morning, selling shares for 2.9 cents each at 12:19 pm AEST.


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