BlueBird Battery Metals Inc (CVE:BATT) is set to buy 100% of the granted exploration licences of the Ashburton cobalt project in Western Australia, which may house a near surface deposit.
The project lies 100km southwest of Paraburdoo and the vendor is Peter Romeo Gianni.
The cobalt mineralisation is contained within manganese.
"We are excited to add another Co-Mn project to our portfolio in Western Australia that not only delivers well above industry standard Co grades, but has the potential to yield simpler metallurgy, noting the cobalt is hosted by manganese," said Alf Stewart, president of BlueBird.
"Another key reason we selected the Ashburton, other than the style and grade of deposit, is the Western Australia location, which is known globally as where mining projects can be fast tracked to production, and dramatically quicker than North America.
"Mineral projects are significantly more valuable the sooner the product reaches the end user or market," added Stewart.
The acquisition increases the group's Australian cobalt footprint to 518 sq km.
BlueBird chief executive and chairman Peter Ball added: "Historical exploration at the Ashburton Cobalt project indicates an opportunity for the discovery of a near surface cobalt deposit, will play a key part in establishing BlueBird as a leader in the exploration and advancement of cobalt projects."
"With four acquisitions in three months focused on building a portfolio of quality cobalt projects, we are clearly providing a platform to build shareholder value for our shareholders.
"We continue to review other battery metal projects to add to our portfolio and look forward to delivering value through focused aggressive exploration programs."
Under the terms of the letter of intent, Bluebird Battery Metals will purchase 100% of Ashburton by paying the Vendor C$25,000 and issuing, over two years, shares valued at C$1.5mln.
The 189 sq km tenement package increases BlueBird's portfolio of cobalt projects in Western Australia to 231 sq km and its total portfolio in Australia to 518 sq km.
Historical exploration of surface rock chip samples indicate anomalous cobalt grades ranging from trace to 0.311%.