Canada Cobalt Works has widened its processing options for both its Castle and Beaver projects, in the Cobalt Camp of northern Ontario, Canada, with the acquisition of a permitted and operating mineral and precious metal processing facility.
The company has signed a letter of intent to acquire the assets of PolyMet Resources Inc, owner of ISO-certified PolyMet Labs and the Cobalt Camp’s only permitted and operating mineral and precious metal processing facility, it said.
The C$650,000 ($491,861) transaction, expected to be made up of cash and shares, provides the company with “multiple immediate and long-term advantages”, it said. This includes a high capacity bullion melting furnace to pour payable silver and gold doré bars. The 23,400 sq.ft (2,174 sq.m) facility has sampling and analytical capabilities and can also host the company’s proprietary Re-2OX Process for environmentally-friendly extraction of cobalt, precious and base metals, it said.
Re-2OX skips the normal smelting process to create battery-grade cobalt sulphate, according to Canada Cobalt Works, with the company earlier this year saying it planned to submit a patent application to protect the technology.
The transaction will see the lab and mineral processing facility become the new headquarters of Canada Cobalt. This facility is located in the town of Cobalt, immediately adjacent to a rail line and just a short distance from the company’s Castle mine and Beaver properties.
The company said: “This well-established sampling and analytical facility, specialising in high-grade mineralisation, provides commercial assaying, crushing, screening, grinding, bulk sampling, upgrading and smelting services all in one location, driving multiple revenue streams at a time when gold prices in Canadian dollars have hit new record highs.”
According to the company, PolyMet has demonstrated that in an eight-hour shift, it can pour up to 10 doré silver bars of 1,000 oz each (90% to 95% fine).
“PolyMet is currently making inroads into the potentially lucrative e-waste business that can be leveraged through Canada Cobalt, its extensive relationships and its Re-2OX Process,” Canada Cobalt said. “Material from mixed computer boards is being processed through the facility’s shredder and ball mill to recover precious and base metals.”
Frank Basa, President and CEO of Canada Cobalt, said: “This deal builds dramatically on Canada Cobalt’s current competitive advantages and opportunities – technological, on the ground and underground – in a rejuvenated silver-cobalt district recognised as the birthplace of Canadian hard-rock mining.
“With such a unique and fully operational facility in the town of Cobalt, so close to the Castle mine and other properties, Canada Cobalt achieves a key goal of becoming a vertically integrated leader in Canada’s silver-cobalt heartland while it also exploits a powerful new cycle in precious metals.”
Gino Chitaroni, Majority Owner of PolyMet Resources, said: “We see some really exciting synergies here. Canada Cobalt’s track record of success in this district made them the perfect fit to take the PolyMet Lab and facility to the next level while I remain involved to assist Canada Cobalt from an operational standpoint.”
He continued: “Bullion pouring, bulk sampling, commercial assaying and e-waste are PolyMet’s four key immediate profit centres that merge with Canada Cobalt, creating powerful new synergies. Hosting Re-2OX and accelerating the development of such a unique and environmentally friendly process at this facility is a major coup for the town of Cobalt and the broader district.”