back Standstill Agreement in Place for the Karakul Option Agreement
November 3, 2014 | Category: Press Releases
VANCOUVER, BC / NOVEMBER 3rd, 2014 / GLOBAL COBALT CORP. (TSXV:GCO, OTCBB:GLBCF, FRA:3P0) ("Global Cobalt" and/or the "Company") has entered into a standstill agreement (the "Agreement") with Imperial Mining Holding Limited ("IMHL"), with respect to its option agreement to acquire a 100% interest in the Karakul Cobalt property ("Karakul") along with the Altai Sister Projects (collectively, the "Properties") located in the Altai Republic, in the Russian Federation (the "Option Agreement"). The standstill will remain in effect until at least January 31, 2015 in order for IMHL to resolve issues with respect to the title and to allow IMHL and Global Cobalt to enter into amendments to the Option Agreement.
Erin Chutter, President and CEO, explains:
"We have agreed to enter into the standstill to allow IMHL time to cure issues with respect to title of the Karakul Project without the potential of option termination, which we will retain. We remain committed to Karakul and are hopeful that IMHL will resolve the matter at hand. IMHL has informed us that they are committed to extending the option agreement and will continue to work to resolve their internal issues. Global Cobalt continues to examine opportunities in the cobalt space while working hard to assist IMHL in finding a workable solution to their situation."
As per the terms of the Option Agreement Definitive Agreement signed in 2013, in order to earn an initial 74.9% interest in the Properties, Global is required to make staged exploration expenditures of at least USD $15 million on the Properties by December 30, 2015. While the Company is compliant in meeting these terms to date, receivership proceedings commenced by Invest Project, LLC against IMHL's subsidiary AltaiRudaMetall, LLC ("RuMetall") and the subsequent ruling by the Arbitration Court of the Altai Republic determining that RuMetall is under receivership protection, have among other things, resulted in the Companyyâ?s inability to extend the option agreement at this time. The inability to perform the Company's obligations under the Option Agreement is due to causes solely beyond its control, and at all times, has been willing to perform the obligations under the Option Agreement. The Company has also been notified by IMHL that the Arbitration Court of the Altai Republic has granted the application to extend the bankruptcy proceedings of RuMetall for six months until April 28, 2015.
Erin Chutter added:
"The Company remains focused on its efforts to further explore and better understand the mineralization at ittâ?s 100% owned Werner Lake Project located in Ontario, Canada and newly leased Iron Creek Cobalt Project in Idaho, United States. The Company will also commit to evaluate and unlock the potential of new exploration partnerships, property acquisitions and transactions that will add potential shareholder value to the Company."
Global Cobalt Corporation:
Global Cobalt Corporation is a publicly traded Canadian resource company that was founded in 2007 to take advantage of the global transformation that is occurring in the strategic metals sector of the mining industry. Through a combination of acquisitions and internally developed businesses, Global Cobalt exploits market opportunities as they emerge in various sectors of the strategic metals sector with emphasis on those metals, such as cobalt, used in the rechargeable battery space.
For Further Information:
Mr. Mitchell Smith, Corporate Development
Suite 1510-1050 West Pender Street
Vancouver, BC V6E 3T4
Tel: +1 (604) 688-4219
Fax: +1 (604) 688-4215
Email: [email protected]
www.GlobalCobaltCorp.com
TSXV:GCO; OTCBB:GLBCF; FRA:3P0; CUSIP:37890F
Cautionary Statement on Forward-Looking Information: This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws, concerning the business, operations and financial performance and condition of the Company. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements contained in this news release include statements with respect to: expectations regarding shareholder approval of the Amendment; the delivery of a National Instrument 43-101 compliant technical report and mineral resource estimate for the Karakul cobalt project and the ability of the Company to raise the additional funds required for the continued development of its mineral properties. Forward-looking statements 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. Factors that could cause actual results to differ materially from our expectations include uncertainty about the level of shareholder support for the Amendment and the share issuances contemplated thereunder; the need to obtain permits and governmental approvals; risks of construction and mining projects such as accidents, equipment breakdowns, bad weather, non-compliance with environmental and permit requirements, unanticipated variation in geological structures, ore grades or recovery rates; unexpected cost increases; fluctuations in metal prices and currency exchange rates; the impact of economic sanctions on companies conducting business in Russia; and other risk and uncertainties disclosed in reports and documents filed by the Company with applicable securities regulatory authorities from time to time. The forward-looking statements made in this news release reflect management's beliefs, opinions and projections on the date the statements are made. Except as required by law, Global Cobalt assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.
Neither 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.