Blackstone Minerals (ASX:BSX) has entered into a binding agreement to acquire 100% of the Little Gem Cobalt project in British Columbia, Canada. This is an early stage exploration project where previous operators have identified high-grade cobalt and gold mineralization during sampling programs. On top of that, historic underground drill results from the adits (it’s a past-producing mine) have yielded impressive grades with for instance 3.3 meters containing 1.4% cobalt and 12.3 g/t gold as well as 1.8 meter at 2.4% cobalt and 112 g/t gold.
The project was discovered right before the Second World War, but has seen very little modern exploration activities which means the historical sampling and drill results might be just the tip of the iceberg with much more to be found and discovered at Little Gem.
Blackstone Minerals will issue 25 million shares of Blackstone (resulting in approximately 1 Blackstone share per 2.46 shares of the company owning Little Gem) whilst an additional 8 million performance shares will be issued. These performance shares can be converted into a normal common share upon meeting certain milestones.
As Blackstone has a top-notch management team, we are expecting the company to hit the ground running and perhaps accelerate the $700,000 work commitments to acquire Little Gem from the vendor.
The author has a long position in the private company which owns the Little Gem project, and will accept Blackstone’s offer. Please read the disclaimer