Global Cobalt Corp. - President's Report 2013
January 16 2014 - 9:00AM
Access Wire
VANCOUVER, BC (JANUARY 16TH,
2014)...GLOBAL COBALT CORP. (TSXV:GCO) ("Global Cobalt"
and/or the
"Company") (TSXV:GCO)
is pleased to announce the release of the following
Report to Shareholders by Ms. Erin Chutter, President and Chief
Executive Officer:
Dear Shareholders:
2013 was a
transformative year for Global Cobalt. Despite uncertainty in the
mining industry and capital markets, Global Cobalt remained focused
on driving forward and creating value from its outstanding land
position in the Altai Republic, Russia. The Company has
amassed an exceptional package of
cobalt and strategic metal assets and the corporate and exploration
groundwork laid in 2013 is just now beginning to reveal their true
potential. Further, the Company has been extremely fortunate to
receive investor attention through tumultuous markets and has
raised capital throughout the year to continue advancing its
corporate strategy. Our team is incredibly proud of the progress it
has been able to achieve over the past year and we stand confident
that we are on track to achieve our primary goal of supplying the
growing need for cobalt to the world's markets.
The Company met its
aggressive drilling schedule with the
completion of a 45-hole, 7,398 metre drill
program, the results of which will
facilitate the preparation of a National Instrument 43-101
compliant resource for the Karakul project, providing a key metric
for long term project feasibility. To date, the results
from the first seven holes reported
correlate very well with, and verify historic Soviet-era drill hole
results, and most importantly confirmed the validity of the Karakul
Cobalt Project. Additionally, new mineralized zones were discovered
and promising silver and tungsten values were returned. Looking
forward, the Company will continue to receive additional assay
results from the outstanding drill holes sampled. These will
further the understanding of the scope of the deposit.
Although we are in
midst of unusually challenging times in the capital markets, we
have been able to continue to operate over the past year due to the
strong support of our loyal shareholder base as well as our
management team and Board. In 2013, Global Cobalt announced three
separate warrant
exercises demonstrating significant
shareholder support in the Company, the management team and the
Company's commitment to advancing the Karakul Cobalt Project. The
Company also closed on a number of private
placements and arranged for
funding that fully satisfied the
2013 drill program and work campaign at Karakul. In total the
Company raised in excess of $5.9 million in 2013 not including the
recently announced closing of an over-subscribed private placement priced at a premium to the market for over $2.97
million.
Further, the Company
has also begun work with a number of critical partners in
preparation for making the important decisions related to project
development and construction. Global Cobalt announced our
agreement with China's top battery material
supplier, Beijing Easpring Material
Technology Co., Ltd. ("Easpring"). The Agreement provides our
Company the right to sell to Easpring up to 100% of the total crude
cobalt hydroxide, cobalt concentrate or cobalt carbonate production
from the Karakul Cobalt Project for an initial term of 10 years
from the commencement of commercial production at market
competitive prices, and in addition, the Agreement also allows for
Easpring to participate in future mine project financing. We also
awarded a Feasibility
Study to Beijing General Research
Institute of Mining & Metallurgy ("BGRIMM"), a leading global
mining consultancy. BGRIMM will work closely with Global Cobalt to
complete an internal Feasibility Study, which will be used to
define the technical and economic parameters of the Project to
assist with assessing a potential production and funding
decision.
In addition to our
near term mining plans at the Karakul Cobalt Project, one of Global
Cobalt's strategic advantages rests in the Altai
Sister Properties (the "Altai
Sisters"), a collection of assets that covers prospective ground in
a westerly arc north of Karakul. Although the primary development
focus remains on the Karakul deposit, we believe that these offer
tremendous upside potential and in some cases extensions of
mineralization. Global Cobalt envisions advancing
this newly assembled portfolio of highly prospective
projects into a new mining jurisdiction focused on cobalt and other
strategic metals. Initial analysis of the historic drilling
results, along with a geophysical review indicates that the Altai
Sisters have the potential to add dramatically to the Company's
future resources.
While having a
strategic project portfolio is key, even more important, is having
a team of
professionals to recognize what it
takes to unlock the value within those projects. Global Cobalt has
benefited tremendously from them team of seasoned industry
professionals and managers, it has attracted. In 2013, we
strengthened the senior management operational and technical team
with the addition of Dr. Michael Hitch as Chief Operating Officer
and Mr. Paul Sarjeant as VP Exploration. Messrs. Jaime Stallwood
and Graham Abbott have been instrumental in communicating to
shareholders as managers of Investor Relations, since joining the
team.
At the Board level,
the Company also added to the existing strength, depth, and
combined experience with the addition of four new directors: Mr.
Gaston Reymenants, Mr. Kamen Zahariev, Mr. Alexander Ordanian and,
Mr. Peter Reynolds.
Finally, I would like
to thank our many loyal shareholders, who share our vision and are
confident in, and support our leadership team, as we continue to
build a new cobalt and strategic metals mining district in the
crossroads of Central Asia. We look forward to developing
long-term, sustainable value for our shareholders and
partners.
Sincerely,
Erin Chutter, President & CEO
Global Cobalt
Corporation:
Global Cobalt
Corporation is a Canada-based strategic metals company focused on
the development of a new mining region in the Republic of Altai.
Global Cobalt will build upon the success
of the Altai Projects while aggressively
expanding and exploring existing properties to meet the demand for
cobalt and other strategic metals.
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:
info@globalcobaltcorp.com
www.GlobalCobaltCorp.com
TSXV:GCO; FRA:3P0;
CUSIP:37890F
Cautionary
Statement on Forward-Looking Information: The statements made in
this News Release may contain certain forward-looking statements.
Actual events or results may differ from the Company's
expectations. Certain risk factors may also affect the actual
results achieved by the Company.
This news release
shall not constitute an offer to sell or the solicitation of any
offer to buy, nor shall there be any sale of these securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful. The shares offered will not be and have not been
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") and may not be offered or sold
in the United States absent registration or an applicable exemption
from the registration requirements of the U.S. Securities Act and
applicable state securities laws.
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.