Recently launched up to 6,000 metres of further drilling at its Uganda properties
Announced plans to merge with Australia’s Jervois Mining
Projects are located in Uganda, which is next door to DRC, where 65% of the world’s cobalt is produced
Strong funding to continue the expansion of the initial drill program and the next phase of exploration
What M2 Cobalt does
M2 Cobalt (CVE:MC, FRA:AOK, OTCMKTS:MCCBF) focuses on discovering and developing cobalt assets in Uganda, East Africa.
The company’s licenses cover about 2,413.8 sq/km of highly prospective land in particularly mineral-rich areas of Uganda. Uganda is next door to the world’s largest producer of cobalt, Democratic Republic of Congo, which produces about 65% of the world’s cobalt.
Cobalt, a silverish-gray metal, is an essential ingredient in lithium-ion batteries that power smartphones as well as plug-in electric vehicles.
M2 Cobalt is focusing on two projects: the Kilembe project, which spans 193 sq/km, and is located near the site of the historic Kilembe mine, a major copper producer in the 1950s to 1970s. The other area of interest is Bujagali, located in south-central Uganda, which is makes up 1,400 sq/km.
How is it doing?
The company completed about 2,000 metres of diamond drilling before December 2018, primarily at priority targets at its Kilembe-area properties. Results are now coming in, said the company, and include a number of positive indicators, including sulphide mineralization at the targets tested in the Kilembe area as well as at the Bombo targets.
In March, the company announced it has launched up to 6,000 metres of further drilling at its Uganda properties.
In January, the company announced plans to merge with Jervois Mining Ltd. It has received support for the deal from shareholders, and it is expected that formal shareholder approval will be received via a vote in early to mid-May 2019.
As part of the process, M2 Cobalt said it had now satisfied all outstanding conditions for the drawdown of the US$3 million working capital facility from Jervois, which will be used to fund the continuation and expansion of the initial drill program and the next phase of exploration.
For now, the promise of cobalt in Uganda looks strong, with plenty of room to grow.
CEO says company a first-mover in under-explored jurisdiction
“We're really fortunate that a company of our size can be a first-mover in a highly under-explored jurisdiction, like Uganda,” says CEO Simon Clarke.
"We've always taken the view that part of this exercise is also about re-building an industry that should be a material provider of income and growth for Uganda as a nation. They have very strong local geologists there. They've built up the industry there over 13 or 14 years. Out of our team there, we utilize local geologists, local geophysicists and all of our work teams are sources locally."