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EPower Metals to buy Magenta cobalt-gold project in Mexico

EPower Metals Inc. entered into a definitive deal to buy the Magenta cobalt project in Mexico's Sinaloa state from Bowering Projects Ltd. for US$150,000 and 2.5 million company shares.

The early-stage project, which is not subject to any royalties, consists of five claims covering 2,274 hectares and hosts a number of cobalt-gold-silver-nickel deposits, the company said Dec. 20.

Magenta surrounds two small mining claims hosting the El Escobal epithermal gold deposit, which was mined in the 1950s and 1960s and is 900 meters northwest of the La Prieta deposit, which hosts historical mine workings.

The company noted that the relationship between the La Prieta and El Escobal mineral systems has not been investigated. It aims to define a cobalt-precious metals resource on the property.

The deal is subject to approval from the TSX Venture Exchange.