/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRES./
TSX.V: CPO, Pink Sheets: CBBWF
VANCOUVER, Sept. 18, 2017 /CNW/ - Cobalt Power Group Inc.
(the "Company") (TSX.V: CPO, OTC Pink: CBBWF) is pleased to
announce that it has now completed its due diligence review of the
business and affairs of Canadian Cobalt Projects Inc. ("Canadian
Cobalt") and the four separate blocks of mineral claims owned or
leased by Canadian Cobalt in the South Lorrain and Lorrain
Townships, Ontario which
encompasses approximately 7,400 ha of prospective mineral lands.
Canadian Cobalt Projects Inc. is an Ontario corporation incorporated specifically
for the purpose of acquiring the four (4) blocks of property lands
at issue.
Given the current events within the Company, which have included
a strategic investment by Hochschild Mining Holdings Ltd. (see news
release August 30, 2017), the terms
of the proposed acquisition were adjusted and the consideration
that the parties have now agreed to for Cobalt Power's acquisition
of all of the issued and outstanding shares of Canadian Cobalt has
been reduced to 29,950,000 shares, plus a 1.5% net smelter returns
royalty, of which 75% may be purchased at any time in consideration
for a cash payment of (CDN)$1,000,000
(terms of the proposed acquisition were initially announced by the
Company on July 27, 2017). Following
completion of the transaction, Canadian Cobalt will become a wholly
owned subsidiary of Cobalt Power Group. The terms of acquisition
are subject to TSX Venture Exchange approval.
Highlights
- On completion of the acquisition, Cobalt Power becomes one of
the largest landowners in the prolific Cobalt Camp/Silver Centre
(land holdings total approximately 21,100 acres - 8,500 ha).
- Claim group is in close proximity to several historic mines,
including the former producing Keely and Frontier Mines, as well as
the recently announced First Cobalt/Cobalt One lands.
- Presence of historical showings on the properties, combined
with the favourable geological setting, enhances the geological
potential for the properties.
Dr. Andreas Rompel, President
& CEO comments, "The acquisition of the Canadian Cobalt
properties presents a rare opportunity to increase our land
holdings in the Silver Centre region, an area with a robust mining
history and known high-grade silver/cobalt mineralization."
About Cobalt Power Group Inc.
Cobalt Power Group Inc. is a publicly traded Canadian
exploration company listed on the TSX-Venture Exchange (TSX-V: CPO)
focused on cobalt exploration and development.
The Company has made a series of strategic property acquisitions
over the past year, seeking cobalt mineralization near Cobalt, Ontario - a region with a long history
of silver and associated cobalt production. Property holdings
including the Canadian Cobalt Project total approximately 21,100
acres (8,500 hectares) in contiguous and strategic claim blocks.
There are several historic mining operations on the properties that
are potentially accessible, including the Smith Cobalt shaft and
its underground workings.
Chris M. Healey, P. Geo, V.P.
Exploration, and a Director of Cobalt Power Group is the qualified
person responsible for the technical content of this release, and
consents to its dissemination.
On behalf of the Board of Directors
"Andreas Rompel"
_________________
Dr. Andreas Rompel, President and
CEO
Cobalt Power Group Inc.
www.cobaltpowergroup.com
We seek safe harbor.
The TSX Venture Exchange Inc. has in no way passed upon
the merits of the proposed transaction and has neither approved nor
disapproved the contents of this press release.
Forward Looking Information
WARNING: The Company relies on litigation protection for
`forward looking" statements. Actual results could differ
materially from those described in the news release as a result of
numerous factors, some of which are outside the control of the
Company. This news release does not constitute an offer to sell or
a solicitation of an offer to sell any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S.
Securities Act') or any state securities laws and may not be
offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
Cautionary Statement on Forward Looking
Statement
Certain information contained in this news release, including
information as to our strategy, projects, plans or future financial
or operating performance and other statements that express
management's expectations or estimates of future performance,
constitute "forward looking statements". Actual results may differ
materially from those indicated by such statements. All statements,
other than historical fact, included herein, are forward-looking
statements that involve various risks and uncertainties. There can
be no assurance that such statements will prove to be accurate and
actual results and future events could differ materially from those
anticipated in such statements.
In connection with the forward-looking information contained in
this news release, CPO has made numerous assumptions. While CPO
considers these assumptions to be reasonable, these assumptions are
inherently subject to significant uncertainties and contingencies.
Additionally, there are known and unknown risk factors which could
cause CPO's actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information contained herein.
A more complete discussion of the risks and uncertainties facing
CPO is disclosed in CPO's continuous disclosure filings with
Canadian securities regulatory authorities at www.sedar.com. All
forward-looking information herein is qualified in its entirety by
this cautionary statement, and CPO disclaims any obligation to
revise or update any such forward-looking information or to
publicly announce the result of any revisions to any of the
forward-looking information contained herein to reflect future
results, events or developments, except as required by law.
SOURCE Cobalt Power Group Inc