Projects include one of the most famous cobalt mines in the world.
Berkut Minerals is proceeding with the acquisition of a private company which holds the granted rights to several prospective cobalt projects in Scandinavia.
The decision was taken after successfully completing a due diligence on the projects.
Berkut will now acquire the granted rights to 100% of the following three cobalt prospective projects in Norway and Sweden:
– Skutterud Project in Norway;
– Gladhammar and Tunaberg Projects in Sweden.
The Skutterud project area in Norway contains one of the most famous, historic cobalt mines in the world, and lends its name to one of the main cobalt ore minerals, Skutterudite.
The area was mined throughout the 18th and 19th centuries, during which time it supplied much of the world’s cobalt, and the operator was reported to be the most profitable company in Norway.
Interestingly, the vast majority of the strike of old workings at Skutterud remains open and untested by modern exploration methods.
The Gladhammar and Tunaberg mining districts are in southern Sweden, south of Stockholm.
Both districts contain historic, cobalt-dominant mine workings from the 15th to 19th centuries, untested by modern exploration methods.
Upon shareholder approval of the acquisition, ground exploration is expected to commence at the projects which will initially comprise of geological mapping and sampling.
Berkut will also carry out analysis of geophysical data to gain a better understanding of the scale and grade potential of the projects.
This work is expected to rapidly advance the Skutterud Project to initial drill testing.
The consideration for the acquisition is $90,000 in cash and up to 11 million Berkut shares. The company’s cash position post transaction will be circa $4.5 million.
Berkut’s share price has increased 63% since the start of 2017, last trading at $0.24.