European Cobalt Shares Up 45% on New Gold Venture (ASX:EUC)
The European Cobalt Ltd [ASX:EUC] share price increased by 45% today, with shares surging to $0.029 at time of writing after a trading halt.
European Cobalt is an ASX-listed company with 100% ownership in the Dobsina and Kolba projects in Slovakia, and the Jouhineva project in Finland.
Why did the EUC share price increase today?
The company signed an exclusive option to acquire 100% of the Edleston Gold Project in Canada. Edleston is positioned within the Cadillac-Larder Fault Zone, approximately 60km to the south of Timmins, in Ontario, as you can see below.
Source: European Cobalt
Edleston has over 75 Moz in previous gold production and it’s had extensive mineralisation outlined through 156 diamond holes for over 46,000m of drilling. Intersections from the previous drilling included 5.3m at 81.39 grams per tonne of gold from 110m; 3.3m at 57.4g/t Au from 207.4m and 3.44m at 25.85 g/t Au from 107.66m.
There is a 3,300m corridor of strike defined by multiple Induced Polarisation (IP) that’s still to be drill tested. According to the company, there are more than 10kms of prospective geological strike within tenure.
European Cobalt’s Managing Director, Rob Jewson said:
‘The Edleston Gold Project is an advanced exploration opportunity with particularly exciting exploration upside potential. […] To date only 540m of strike has been tested along a corridor with multiple moderate to strong IP conductors delineated along a total strike exceeding 3,300m.’
According to the announcement, more than CAN$10 million have already been spent on primarily geophysical and drilling activities within the Edleston Project.
The company had the option to acquire the project after paying a non-refundable CAN$100,000 fee (approx AU$108,000). To proceed, European Cobalt will need to pay CAN$650,000 (approx AU$707,000) in cash and issue 100,000,000 in European Cobalt shares.
What could happen next?
As of 31 March 2020, European Cobalt held a cash balance of over $9.7 million and was looking at cost saving initiatives to preserve cash.
European Cobalt’s main focus may be exploring cobalt, but it’s not surprising that higher gold prices are attracting more companies into gold.
One way to get exposure to gold is through gold explorers. Another is to own physical gold.
If you are interested in knowing more about how to invest in gold, check out Shae Russell’s step by step guide on the ‘Best Way to Buy, Sell and Store Gold’.
To read this FREE report, click here.