VANCOUVER, British Columbia, June 07, 2018 (GLOBE NEWSWIRE) — Cameo Resources Corp. (TSX Venture:CRU) (OTC:CRUUF) (FWB:SY7D) (the “Company” or “Cameo Cobalt”) is very pleased to announce that the Company has entered into a letter of intent (the “LOI”) to acquire a large scale land package in Chile’s Carrizal Alto’s historic cobalt region, located 100 kilometers north of the La Cobaltera District.
Cameo Cobalt’s flagship Chilean project is situated adjacent to Genlith Inc.’s (“Genlith”) subsidiary, Chilean Cobalt Corp, as per Genlith’s April 11 new release (https://www.genlith.com/news/company-update-0). Genlith Inc. is a Pennsylvania based holding company focused on energy storage and critical battery materials and reports that cobalt production occurred on their Carrizal Alto and La Cobaltera projects from 1844 thru 1944, mostly for military applications ceasing at the end of World War II.
Cameo’s CEO, Akash Patel states, “Cameo is excited to option the priority exploration properties adjacent to Genlith’s reported historical cobalt production at Carrizal Alto. We will immediately begin due diligence, and intend to follow up with exploration to define cobalt mineralization on our new mining concessions.”
About the Carrizal Alto Cobalt Project
The area acquired is in Carrizal Alto’s historic cobalt producing region and is located 100 kilometers north of the La Cobaltera District.
- 456 hectares in Carrizal Alto district, Chile;
- Adjacent to historic operating site that has Chilean government production data with high-grade cobalt, as reported by Genlith Inc. (www.genlith.com);
The Chilean National Service of Geology and Mining, Sernageomin, performed preliminary work on the La Cobaltera and Carrizal Alto areas in 2008. A November 2017 report by Chile’s Corporation for the Promotion of Production (“CORFO”) states that the San Juan District has cobalt mineralization in veins and mantos (hydrothermal bedded deposits). The report identifies the land package Cameo Cobalt has secured as within one of the main areas of cobalt mineral potential in Chile.
In the San Juan-Carrizal district, primary cobalt mineralization occurs as cobaltite, a cobalt sulfo-arsenide. At surface, cobalt occurs as a secondary oxidized mineral, erythrite, a cobalt arsenate. Mineralization occurs mainly in veins and mantos with average cobalt concentrations of 1.6% for primary ore, and up to 6.4% for secondary oxidized ore.
Most recently the Geological and Mining Service of Chile carried out regional sampling of mineralization and hydrothermal alteration systems in the metallogenic province of the Coastal Cordillera of the Atacama and Coquimbo regions. Geochemical data was processed and analyzed by Artificial Neural Nets (ANN). No significant modern exploration or drilling has taken place in the region since then, which has historically been well endowed with copper and cobalt.
Carrizal Alto Cobalt Project Transaction Terms
Subject to satisfactory completion of due diligence by Cameo, Cameo Chile and the Vendor would enter into and execute a formal purchase and sale agreement (“Purchase Agreement”) whereby the Vendor would agree to sell to Cameo Chile, and Cameo Chile would agree to purchase from the Vendor, one hundred (100%) percent of the right, title and interest of the Concessions from the Vendor, free and clear of all liens charges and encumbrances, in consideration of the sum of USD $5,050,000 and 2,500,000 Cameo Shares, to be paid and satisfied as follows:
|(a)||upon the closing (such event being the “Closing”, and the date of Closing being referred to as the “Closing Date”):|
|(i) an initial payment of USD $150,000, and|
|(ii) 250,000 Cameo Shares;|
|(b)||on or before the day which is one (1) month following the Closing Date:|
|(i) a further payment of USD $150,000, and|
|(ii) 250,000 Cameo Shares;|
|(c)||on or before the day which is twelve (12) months following the Closing Date:|
|(i) a further payment of USD $500,000, and|
|(ii) 500,000 Cameo Shares;|
|(d)||on or before the day which is twenty-four (24) months following the Closing Date:|
|(i) a further payment of USD $750,000, and|
|(ii) 750,000 Cameo Shares;|
|(e)||on or before the day which is thirty-six (36) months following the Closing Date:|
|(i) a further payment of USD $1,000,000, and|
|(ii) 1,000,000 Cameo Shares; and|
|(f)||on or before the day which is forty-eight (48) months following the Closing Date:|
|(i) a further payment of USD $2,500,000|
Harrison Cookenboo, Ph.D., P.Geo., is a qualified person as defined in National Instrument 43-101. He has reviewed and is responsible for the technical information presented in this news release.
CAMEO COBALT CORP.
“ Akash Patel”
For more information contact: