Shares of Primary Cobalt Corp (CSE:PRIM) surged 30% Wednesday after the junior explorer announced it has signed an agreement with Exco Mining (Spain) to acquire up to an 85% interest in two cobalt, copper, nickel and manganese projects and two vanadium permits in Spain.
The company said the two permits in Almeria and Granada provinces in southern Spain and two permits in Badajoz, in central Spain totalled 500 square miles or 130,000 hectares.
The company said a condition to closing is the raising of C$1mln by the company.
READ: Primary Cobalt Corp is building a significant exploration portfolio in Spain and British Columbia
“We are pleased with this major step forward for Primary focusing on ethically sourced energy metals," said chief executive officer Patrick Morris.
"Our exploration activities today has become more global in nature and include cobalt, vanadium, nickel, copper, and silver that have gone beyond where we began under Primary Cobalt in 2018.”
Spain hosts a diversified mining sector, which produces mostly industrial minerals and stone.
The country encompasses almost 90% of the Iberian Peninsula which is considered to be the most mineralized zone in the European Union.
READ: Primary Cobalt and Exco Mining release grab sample results from Spanish project; shares boosted
Under the deal, an exclusive work project has been issued for each of the four permits. The company will pay 10,000 Euros at closing to earn a 20% interest, issue shares at a deemed price of C$.10 per common share with a value of 100,000 Euros when a research permit is issued to earn an additional 30% interest and a final 35% interest when the work commitment is completed.
The four permits include: Buran, Beatriz, Odin and Altair.
Shares of Primary Cobalt were at C$0.09, up 30.0% on Wednesday mid-day.