M2 Cobalt Corp (CSE:MC) is to increase its presence in Uganda as it's set to buy four further exploration licences, which are contiguous with or close to its existing Kilembe-area and Bujagali projects.
The company has entered a definitive purchase agreement with Ugandan firm Olympic Minerals Ltd to acquire the licenses, which span around 850 square kilometres (sq km).
That adds to the firm's landholdings already, which consists of seven licences totalling 1,564 square kilometres (sq km).
"We are extremely pleased to acquire these additional exploration licences at this time; they significantly expand our already large asset package," said Simon Clarke, chief executive at M2 Cobalt.
"These licences are also highly strategic as they are contiguous with, or adjacent to, key areas where our phase 1 exploration program generated strong results and highlighted a number of large discoveries and priority targets.
"With the acquisition of these additional ELs, the company is now even better positioned to expand its potential for large-scale copper-nickel-cobalt discoveries from three different styles of mineralization across numerous target areas."
As consideration for the licences, the firm will pay US$150,000 and issue 350,000 company shares.
It will also pay US$400,000 and issue 450,000 shares on the earlier of 31 May 2019, or when the company raises a minimum of $3 million from an offering.
In addition to the two drill-ready high-priority targets, a VTEM survey, the results of which were announced in July, confirmed a further 719 targets across both Kilembe-area licences, of which 80 were considered high priority.
Meanwhile, the newly acquired licence in Bujagali is 334.6 sq km and is an extension west and south of the company's existing Bujagali licences where five large-scale cobalt anomalies have already been identified.
M2 Cobalt shares are unchanged at $0.245.
Reporting by Giles Gwinnett