Cruz aims for ethically-sourced cobalt in North America

Cruz Cobalt Corp. [CUZ-TSXV, BKTPF-OTC, A2DMG8-FSE] said it has secured the services of Precision GeoSurveys to conduct the airborne work program over Cruz’s British Columbia cobalt properties.  The airborne survey is the first of several work programs that are being formulated, the company said in a press release. The announcement comes after the company recently raised $450,000 from a private placement of 2 million units, priced at $0.225 per unit.

Cruz shares were trading at a 52-week high of 34 cents on Monday. That compares a 52-week low of $0.125.

Cruz currently has nine cobalt properties located throughout North America, consisting of four in Ontario, three in British Columbia, one in Idaho and one in Montana.  The four properties in Ontario are located in the vicinity of the town of Cobalt, making Cruz one of the largest landholders in this emerging cobalt district. The company’s 4,935-acre War Eagle cobalt project in British Columbia covers a past-producing mine. Management expects to commence work on this project in the near future, the company says on its website.

“As we continue to witness the growing demand for ethically sourced cobalt within North America, Cruz is positioning itself as an industry leader with work programs underway on several high quality projects,” said Cruz President James Nelson. “We plan to be active on all of our Canadian and U.S. cobalt projects in 2018,” he said. “We are very optimistic about 2018 as we start the year with more cash in the bank than at any other time and cobalt prices at nine year highs.”

Cruz looks to be one of the most active junior cobalt companies globally at a time of significant growth within the electric car industry, specifically battery metals. “We look forward to meeting that need,” Nelson said.

The company has said its main goal it to make Cruz the foremost cobalt project generator and developer on the TSX Venture Exchange. It has taken the view that cobalt is at the early stages of a significant bull market and wants to position Cruz at the forefront of this cycle.

Cobalt and lithium are often referred to as energy metals. They are the primary constituents, along with graphite, of lithium-ion batteries, the fastest growing segment of the battery market. Lithium ion batteries power mobile phones, laptops, and other electronic devices. Cobalt is also used in the production of super alloys, which are temperature stable, mechanically strong, chemically stable and resistant to corrosion. An important use is in turbine blades, deployed in jet engines. The incorporation of cobalt in a superalloy provides superior temperature stability.