M2 Cobalt (MC.V), the new name of Accend Capital (ADP.V) has announced it has entered into a definitieve agreement with several number-companies in BC to acquire their respective interests in no less than seven exploration licenses in Uganda. The company acquires these seven licenses as part of a cobalt-focused acquisition program, and the in excess of 1,500 square kilometer large land package appears to be very prospective for cobalt mineralization.
Two of the seven licenses are located close to the Kilembe mine in the DRC, whilst the five other licenses were mined by tens of thousands of artisanal miners. Grab samples taken at the five Bujagali licenses (with a total surface are of almost 1,400 square kilometers) returned high-grade gold (up to 3.49 g/t) as well as up to 0.31% cobalt. As a reminder, every 0.1% of cobalt has an in-situ rock value of in excess of $60/t, so rock containing 0.2-0.3% cobalt is pretty valuable. M2 Cobalt is currently completing a NI43-101 compliant technical report on the assets.
M2 Cobalt will issue 19.7 million new shares to acquire these licenses, and is currently raising C$10M in a private placement priced at C$0.50. Every unit will consist of one share and ½ warrant whilst each full warrant could be exercised at C$0.80 for a period of 24 months. The units contain an acceleration clause and the warrants could be ‘called’ by the company if M2’s share price is trading above C$1.40 for at least ten consecutive days.