Golden Deeps Ltd. entered a binding agreement to acquire up to a 100% interest in the Professor and the Waldman cobalt projects in Ontario from New Found Gold Corp.
The company will make staged payments totaling C$315,000 and issue 11.2 million shares. A further C$300,000 payment in cash or shares will be required if the company estimates a resource of over 3 million tonnes at a grade of 0.5% cobalt or more.
Following a 100% acquisition, Golden Deeps will grant a 0.5% net smelter return royalty over production of cobalt, and a 2% royalty over other metals. Half of the royalties can be bought back for a total of C$1.0 million.
Cobalt27 also have a 2.0% royalty on cobalt produced from the projects, according to the Dec. 7 release.
The company intends to compile historical data for the projects and conduct surface sampling and trenching as well as geophysics surveys to identify potential drilling targets.
Fieldwork is scheduled to start in early 2018, with a maiden drilling program planned to be completed during the northern summer.
Additionally, Golden Deeps intends to raise about A$824,000 via a placement of 20.0 million shares at 4.12 Australian cents per share.