(via Thenewswire.ca)
VANCOUVER, BC / TheNewswire / FEBRUARY3RD, 2015 / GLOBAL COBALT CORP. (TSXV:GCO, OTCBB:GLBCF, FRA:3P0) ("Global Cobalt", and/or the "Company") has granted an extension to the standstill agreement (the "Standstill Agreement") with Imperial Mining Holding Limited ("IMHL"), with respect to its option agreement to acquire a 100% interest in the Karakul Cobalt property ("Karakul") along with the Altai Sister Projects (collectively, the "Properties") located in the Altai Republic, in the Russian Federation (the "Option Agreement").
As previously announced on November 3rd, 2014, the Standstill Agreement entered into with IMHL has been amended to now remain in effect until at least March 31st, 2015 in order for IMHL to engage in settlement negotiations with respect to title for Karakul and to allow IMHL and Global Cobalt to enter into amendments to the Option and Loan Agreements.
As per the terms of the Option Agreement Definitive Agreement signed in 2013, in order to earn an initial 74.9% interest in the Properties, Global Cobalt is required to make staged exploration expenditures of at least USD $15 million on the Properties by December 30, 2015. Receivership proceedings commenced by Invest Project, LLC against IMHL's subsidiary AltaiRudaMetall, LLC ("RuMetall") and the subsequent ruling by the Arbitration Court of the Altai Republic determining that RuMetall is under receivership protection have resulted in the Company's inability to meet its obligations under the option agreement at this time. The Company has also been notified by IMHL that the Arbitration Court of the Altai Republic has granted the application to extend the bankruptcy proceedings of RuMetall for six months until April 28, 2015.