VANCOUVER, BRITISH COLUMBIA – February 27, 2018 – Secova Metals Corp. (“Secova” or the “Company“) (TSXV: SEK, Frankfurt: N4UN, USA: SEKZF) is very pleased to announce that the Company has acquired 1151640 B.C. Ltd., a private B.C. Company which sole assets are the Muskrat, Boudrais and Peribonka-Begin Cobalt Projects that consist of 40 claims or approximately 2,186 hectares in eastern Quebec.
The Company plans to immediately commence initial airborne mag surveys to delineate targets on the new properties along with its wholly owned Cobalt Bay project, which could be then followed up with detailed ground exploration programs.
Secova could not ignore the high-levels of interest for the cobalt metal demand due to a globally increased need for electric vehicles. Observing the spot price of the metal rise from $10USD/lb to now over $35USD/lb in a matter of eight months. This positions the Company and its shareholders in a prime position to take full advantage of the high potential the interest of the interest in the metals its garnering.
“Secova’s cobalt property portfolio now represents an opportunistic and strategic investment that is consistent with the Company’s management goals of enhancing the value of the company for our shareholders,” stated Brad Kitchen, President, CEO and Chairman of Secova Metals Corp. “The Company will use its expertise and success in assessing historic projects and developing early-staged projects in advancing to exploration plans that can effectively and efficiently define a potential resource. There is a huge demand for cobalt and the supply chain dynamics of sourcing non-conflict supply of the metal is growing rapidly fuelled by the expected surge in the production of electric vehicles. Value creation for our shareholders is our goal and we are driving towards potentially discovering an economically minable deposit with gold at Duvay/Chenier and the Eagle River projects and also with cobalt in its, now, four cobalt projects.”
The 24 claims (or 1,300 hectares), which comprise the Muskrat Cobalt project, is located in the Riviere aux Rats area of Quebec and is adjacent to and on trend of the McNickel deposit which has 5.9Mt of indicated and an inferred resource of 0.029% Cobalt (and 0.209% nickel and 0.106% copper).
The Boudrias Cobalt project, located in Godbout, Quebec, which consists of six claims (336 hectares). Historically, several showings have identified up to 10% sulphides and also coincident already identified magnetic anomalies. These historic showings have provided results of up to 2.5% combined nickel and copper. Disseminated pentlandite-pyrrhotite with chalcopyrite is hosted in metagabbros or gabbros. Well-defined major structures trending NE-SW, NW-SE and WNW-ESE are believed to be associated with the intrusion of gabbros and the development of mineralization of magmatic origin. Cobalt which was not analyzed yet, in at least in the younger rocks, can be enriched in pyrrhotite-rich rocks where other metals are not present.
The third cobalt project acquired is the Peribonka-Begin property which is located in Lamarche, Quebec, just south east of the Muskrat project. This project consists of 10 claims (550 hectares) that has three historic copper-nickel mineralized showings.
These three projects now comprise Secova’s cobalt project portfolio, along with the Cobalt Bay Project that is 102 km north of Secova’s Eagle River Project in the Windfall Lake area of Quebec and 209 km north northeast of its Duvay/Chenier project near Amos. Historic work on Cobalt Bay has shown that past results have been very promising, including drilling results from 1957 when the New Jersey Zinc Company returned 0.068% cobalt over 4.5 meters, including 1.5 meters of 0.17% cobalt. Secova will use its expertise in the area to develop a systematic exploration plan to determine the extent of the potential cobalt mineralization in its extensive portfolio.
The acquisition is an arms-length transaction in which the Company will issue 20.5 million common shares by way of a share exchange agreement. The Company is not paying any finders’ fees. The issuance of common shares for the acquisition of the private company are subject to TSX Venture Exchange approval.
PDAC Conference in Toronto
Secova will be attending the Prospectors and Developers Conference (“PDAC”) in Toronto which starts on March 4th to March 7th. We welcome you to stop by Booth #3329 to meet the team if you plan on attending.
About Secova Metals Corp.
Secova Metals Corp. is a Canadian exploration company focused on building a strong asset base through exploration of undervalued projects in Canada. Management has demonstrated expertise in advancing gold exploration projects into acquisition targets, most notably in the province of Quebec. Secova has the exclusive right and option to acquire from Tres-Or Resources Inc. (“Tres-Or”), an undivided 65% right, title and interest in the contiguous Duvay/Chenier Gold Projects. Secova can earn up to 90% of the property (an additional 25% ownership) by funding a pre-feasibility study after the initial exploration expenditures to bring the property towards production. The Company has a total contiguous land package of 174 claims covering over 7,766 hectares (17,458 acres) of land. Duvay/Chenier is located in the Abitibi gold belt, one of Quebec’s premier mining jurisdictions. The Company has plans to advance the development of Duvay/Chenier as well as seek other avenues of growth through acquisition and mergers. The Company also has 100% ownership of the Eagle River project (21,920 contiguous hectares) which is adjacent to and on-trend to several gold projects in the Windfall Lake district of Urban Barry in Quebec.
For further information about Secova Metals Corp.:
Office: Tel: +1 604-558-5397
On behalf of the Board of Directors
SECOVA METALS CORP.
Chairman, CEO and Director
Tel: +1 604-558-5397
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains “forward-looking information” that is based on the Company’s current expectations, estimates, forecasts, and projections. This forward-looking information includes, among other things, statements with respect to the Company’s exploration and development plans. The words “will”, “anticipated”, “plans” or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information.