Primary Cobalt (PRIM.C) has entered into definitive agreements to acquire a stake of 85% in four properties in Spain’s Badajoz region (close to the Portuguese border) from Exco Mining with a total surface area of 1,300 square kilometers. Primary Cobalt will have to pay 40,000 EUR for an initial 20% and upon receiving a so-called ‘research permit’, it will have to issue approximately 6 million shares to meet the requirement to pay 400,000 EUR in common stock of Primary Cobalt at a fixed price of C$0.10 to increase the stake to 50%.
On top of that, Primary will need to spend a combined total of 6.6 million Euros (approximately C$10M) within a 3 year time frame to earn the final 35% interest, bringing the total stake to 85%. On top of that, Exco will be paid a 10,000 EUR monthly consulting fee until 2 properties have reached the commercial production phase (which will probably take 8-10 years in a best case scenario. On top of that, Victory Resources will be reimbursed to the tune of almost C$160,000 for prior expenses. To settle this payment, Primary Cobalt will issue a convertible debenture (with a conversion price of C$0.10). An additional 1 million shares will be issued to an outfit called Green Energy Ressources SARL.