SLAM Exploration Ltd. said March 15 that it entered into a letter of intent to sell its Ramsay cobalt property in New Brunswick to American Cobalt Corp.
The eight-claim property covers 2,500 hectares in the Bathurst Mining Camp.
American Cobalt will be required to pay C$500,000 in cash and issue 2.5 million shares over two years. The company will retain a 2% net smelter return royalty, half of which can be repurchased by American Cobalt for C$1 million.
SLAM will maintain obligations to underlying option holders other than certain royalties, which will become the responsibility of American Cobalt.
