// Company History
Cougar Metals aims to deliver capital growth to its shareholders via the selection and development of mineral resources, funded in part through its operation of a cash generating contract drilling business in Brazil.
Projects are selected following the assessment of their respective risk v reward profile and the ability of the Company to manage and fund its activities.
All projects regardless of risk/reward must have the possibility of progressing to a point of production in the short term.
Company History and Background
Cougar Metals NL was incorporated in May 2002 with the initial objective of exploring and developing its Cue Gold Project in the Murchsion Province of Western Australia and also the strategically positioned Toomey Hill Nickel Laterite Project, hosting a high-grade nickel laterite resource near the Murrin Murrin Nickel Mine.
The Company listed on the ASX in 2003 raising $6M AUD and having a Market Capitalisation of of $10 M AUD.
Exploration of the Cue district failed to deliver an economic mineral resource suitable for development by a public company. A disappointing result for Cougar given the historic production of the area and the number of high grade gold intercepts. Cougar relinquished the area in 2007.
The Toomey Hill Nickel Laterite project had a resource defined by Cougar and was subsequently sold for $6.5M in 2005 with Cougar retaining 70% of the proceeds.
In November 2005, the Company acquired the laterite nickel and cobalt rights at the Pyke Hill project (40km east of Minara’s Murrin Murrin Nickel operations near Leonora in Western Australia). A sizeable nickel and cobalt resource was defined and remains an asset of the Company today. Cougar hopes to capitalize on this resource at some point as extractive technology improves and the Murrin Murrin Nickel Operation, 40km to the West continue to deplete its feedstock.
In 2004, The Company established itself in Brazil following the acquisition of a large tenement package prospective for gold, lying within the emerging Alta Floresta Gold Belt in the North of the state of Mato Grosso. Cougar was the first company to consolidate these prospective areas previously only worked by artisanal miners. Much of the ground was hotly contested by other companies, but Cougar prevailed and was granted the areas in 2007, unfortunately post the Global Financial Crisis, limiting the Company’s ability to raise capital and explore the area with the intensity it deserved. None the less, Cougar explored the area and developed a small gold mining operation that produced approximately 12,000 ounces from a narrow, very high grade, underground operation. The Brazilian exploration division was sold to Brazilian interests in 2014. Over 1M USD remains to be collected from the purchasers with legal action against them currently underway in Brazil.
In 2013, the Company announced the acquisition of two options over the “Shoal Lake Gold Project” located in the Province of Ontario in Canada, 15km south of the Trans Canada Highway near the Ontario/Manitoba provincial border, comprising Shoal Lake East and Shoal Lake West projects. The Shoal Lake West project was relinquished in 2015 due to the prevailing poor market for gold exploration, however, the Shoal Lake East project remains intact albeit in hibernation following an arbitration hearing determined wholly in Cougars favour.
The Company negotiated mineral sector downturn of 2015/2016 through the slashing of non-critical expenditure, accrual of directors salaries and fees, and relying on drilling revenues and director loan funds. In doing so, the directors of Cougar protected the Company’s shareholders from highly dilutive capital raisings.
In late 2016 the Company executed two exploration agreements which will now form the focus of the Company’s activities in 2017 and beyond:
· In August 2016, Cougar executed an agreement to earn 85% interest in two areas, highly prospective for lithium, within Brazil. Both areas have known Lithium mineralisation, with one of the areas containing several small areas with historic lithium production (last 30 years). Lithium was and continues to be produced in the region predominantly for the refractory and lubrication industries.
· In Novemeber 2016 Cougar took an option to acquire up to 100% interest in the Toamasina Graphite project in Madagascar. Whilst the graphite market is complex, the Toamasina project presents an excellent opportunity to produce a high quality product at exceptionally low cost, making the project low risk. The qualities of the Toamasina Graphite project are unmatched by any other existing graphite producer – high value product (>60% large flake, low contaminants, High Cg content), low mining and extraction costs due to weathered profile, low capital requirements due to simple flow sheet, low transport costs with just 50km by sealed road to major port. The project is an excellent opportunity to add significant value to Cougar Metals NL.