Canadian cobalt miner announces new exploration licenses in East Africa

Canadian mining junior M2 Cobalt Corp has acquired a set of new exploration licenses in the Republic of Uganda, sparking a sharp rise in its share price on the TSX Venture Exchange (TSXV).

The company adopted its current name in November last year after previously trading under the name Accend Capital, and is looking to supply the rapidly expanding electric vehicle (EV) market with cobalt, which is a vital component in modern rechargeable batteries.

In a statement posted on Toronto’s junior board, M2 Cobalt confirmed it had purchased seven exploration licenses in Uganda, spanning roughly 1,564km² and issued 19.7 million common shares to the licence holders plus cash payments.

At the beginning of the year, M2 Cobalt raised US$8.5 million from investors to finance the exploration trail in East Africa, and found that “market interest in the offering was strong and greatly exceeded the company’s minimum offering of $4 million.”

Managerial changes were also confirmed in the statement, with a new director set to join and lead its East Africa operations, which will also involve an extensive exploration programme for cobalt on the Bujagali and Kilembe properties, building on historic work.

After resuming trading on the TSXV, the company’s share price rocketed up 61.3%.