TORONTO, April 6, 2018 /CNW/ - Cobalt Blockchain Inc.
("COBC" or the "Company") (TSXV:COBC) announced today that it has
successfully negotiated a supply agreement with one of the largest
local mining cooperatives in the Lualaba province of the
Democratic Republic of the Congo
(DRC).
Commencing in June 2018, COBC will
be supplied with a minimum of 40,000 tonnes of cobalt concentrate
per annum, with a minimum grade of 1% cobalt.
"This is a significant milestone in our strategy to generate
near-term cash flow," noted Lance
Hooper, COBC President & Chief Operating Officer.
"Supply agreements with established mining cooperatives complement
our plans for larger-scale, mechanised production activities on
mineral concessions in our property portfolio."
Some of these mineral concessions were announced by the Company
in a March 22 news release,
specifically two definitive joint venture agreements for
copper/cobalt concessions in the DRC, totalling over 48 square
kilometers, with active negotiations on several other
properties.
The Company has filed an application with the DRC's federal
Ministry of Mines for a copper/cobalt trading and export license,
which will allow the Company to establish regional buying depots,
process minerals in-country and export these metal concentrates
internationally.
Procurement from artisanal and small-scale mining (ASM) sources
is supported by an engagement with BetterChain S.L., as announced
in a news release on March 1, to
implement a framework demonstrating secure and transparent origin
of materials, and support accountability tracking along the entire
supply chain from source to store—starting with cobalt. The
blockchain-based platform that integrates this framework is being
developed through a joint venture between the Company and DLT Labs
Inc., as announced in an April 3 news
release, to ensure supply chain transparency and the ethical
sourcing of minerals.
"We expect our licensing to be finalized in May 2018 and initial cobalt concentrate exports
to start early in the third quarter," said Peter Hooper, COBC Chief Executive Officer. "In
parallel with developing our blockchain traceability and reporting
systems, the next steps are to set up depot infrastructure,
organize the ASM work force, and begin conducting metallurgical
testing for our first process plant."
More than twelve percent of global cobalt production currently
originates from ASM operations in the DRC. COBC's multi-pronged
strategy—developing cobalt supply agreements, joint venture
copper/cobalt mining, and blockchain certification—are progressing
towards its ultimate goal of delivering to the market certified,
ethically-sourced cobalt from the DRC.
About Cobalt Blockchain Inc.
Cobalt Blockchain Inc. (TSXV:COBC) is a Canadian resource
company expanding its exploration and development business to
include cobalt assets in the Democratic
Republic of the Congo (DRC). COBC has acquired a 100%
interest in an existing metals trading business specializing in
sourcing minerals from artisanal and small-scale mines in the DRC,
in compliance with international procurement standards.
Leveraging its experience with existing supply chain due diligence
initiatives, COBC is working with partners to develop a
blockchain-based reporting platform to provide greater certainty of
provenance and further assurance that all minerals procured are
ethically-sourced. Senior management have over twelve years of
experience working in the DRC and a proven international track
record in exploration success and the trading of certified
conflict-free, child-labour-free minerals.
Forward-Looking Information
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address future
production, reserve potential, exploration drilling, exploitation
activities and events or developments that the Company expects are
forward-looking statements. Although the Company believes the
expectations expressed in such statements are based on reasonable
assumptions, such statements are not guarantees of future
performance and actual results or developments may differ
materially from those in the statements. There are certain factors
that could cause actual results to differ materially from those in
forward-looking statements. These include market prices,
exploitation and exploration successes, continued availability of
capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are
not guarantees of future performance and actual results or
developments may differ materially from those projected in the
forward-looking statements. For more information on the Company,
investors should review registered filings at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Cobalt Blockchain Inc.