Boreal Metals shares up 10% on Norway cobalt project deal

Untested cobalt mineralization from outcrops at the Modum Project 75 km west of Oslo, Norway. Source: Boreal Metals Corp.

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Shares of Boreal Metals Corp. [BMX-TSXV] were active yesterday after the company said it had completed the acquisition of the Modum Project in Norway from EMX Royalty Corp. [EMX-TSXV, NYSE].

Untested cobalt mineralization from outcrops at the Modum Project 75 km west of Oslo, Norway. Source: Boreal Metals Corp.

Under the terms of the purchase and sale, Boreal has issued to EMX 1,324,181 common shares of Boreal, bringing EMX’s equity stake in the junior to 19.9%. EMX will have the right to participate pro-rata in future financings at its own cost in order to maintain its 19.9% interest in Boreal.

Boreal is a mineral exploration company that is focused on the discovery of zinc, copper, silver, gold and cobalt deposits in exceptional, historic project areas spanning Sweden and Norway. Its aim is to discover new economic mineral deposits in known mining districts which have seen little or no modern exploration.

On Thursday, Boreal shares jumped 10% or $0.03 to 33 cents on active volume of 881,633. The 52-week range is 22 cents and 40 cents.

“The Modum acquisition provides Boreal’s investors with exposure to the rapidly expanding battery metals market,” said Boreal President and CEO Karl Antonius. “We continue our aggressive growth strategy with the Modum Project and additional regional acquisitions,” he said.

“Advancing high quality cobalt assets in Scandanavia is attractive in light of the recent advancement of the Northvolt battery factory in northern Sweden. Northvolt is expected to locally source as much battery material as possible to feed what is expected to be Europe’s biggest battery factory. It will be built on a site in Skelleftea, in the far north of Sweden.

The 13,115-hectare Modum Project is located about 75 km west of Oslo, Norway.  The property surrounds southern Norway’s historic Skuterud Mine (also known as the Modum Mine), which was Europe’s largest and highest-grade producer of cobalt through the 19th century.

It is estimated that the Skuterud Mine supplied over 80% of the world’s commercially produced copper in the 1820s and 1830s with some byproduct copper. Historical mining reports say it produced approximately one million tonnes of 0.2% cobalt.

Modum has been the target of limited modern exploration, including an aeromagnetic survey which was conducted in 2013 and covered the entire land position. The survey was commissioned by the Geological Survey of Norway.

“Importantly, gold is known to accompany the cobalt mineralization, and precious metal potential remains largely unassessed at this time,” the company said.

Boreal notes that the Modum project is accessible year-round, and features robust infrastructure including road, rail, power and skilled labour in nearby municipalities. The Modum property position surrounds an inlier of exploration licenses held and explored by third parties that partially cover the historic Skuterud Mine.

Historic mine workings, prospects and trends of mineralization extent on to the Boreal property.

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