Cameo Inks LOI to Acquire Project in Chilean Cobalt Region
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Cameo Inks LOI to Acquire Project in Chilean Cobalt Region

By: Tomas Ronolski - News

Thursday, June 7, 2018

If once is good, twice is better. At least that's what management at Cameo Resource Corp. (TSX-V:CRU)(OTCPK:CRUUF) must have been thinking when it put out a press release at 3 AM EDT and then again at 9 AM EDT announcing a letter of intent to acquire a big land package in Chile. The Vancouver-based company, which also goes by the name Cameo Cobalt, said that it intends to buy a large project located adjacent to a project of Pennsylvania-based holding company Genlith in Chile’s Carrizal Alto’s historic cobalt region situated 100 kilometers north of the La Cobaltera District.

Officially, the project is next to that of Chilean Cobalt Corp., a subsidiary of Genlith. Chilean Cobalt's property was a site producing high-grade cobalt for a century to 1944, shuttering operations at the end of World War II.

Cameo is conducting its due diligence on the 456-hectare land package next to Chilean Cobalt's property. In 2008, the Chilean National Service of Geology and Mining, Sernageomin, performed preliminary work on the La Cobaltera and Carrizal Alto areas. Years later (November 2017), a report by Chile's Corporation for the Promotion of Production noted that the San Juan District has cobalt mineralization in veins and hydrothermal bedded deposits, lending credence to the idea that Cameo is targeting the right location considering the land subject to the LOI is within one of the main areas mentioned in the report.

Historically, the region is well-known to be prolific for copper and cobalt, although no modern exploration has happened recently. Mineralization occurs mainly in veins and mantos with average cobalt concentrations of 1.6% for primary ore and up to 6.4% for secondary oxidized ore.

Per the agreement, Cameo would pay $5.05 million (USD) and 2.5 million shares of Cameo stock for 100% unencumbered ownership of the property. No mention of whether the LOI was binding or not was provided.

Shares of CRU are up 1.2% in Thursday morning trading to 42.5 cents. The stock has been on the rise since hitting a 10-week low early in May at 29.3 cents.

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