A new owner for Cobalt's PolyMet Labs.

PolyMet Labs, a Cobalt fire assay analytic lab and mineral processing facility, is being acquired by Canada Cobalt Works.

In a $650,000 cash and share deal, the Couquitlam, B.C.-based cobalt and precious metals junior miner announced Oct. 10 it has signed a binding letter of intent to acquire the assets of PolyMet Resources, including PolyMet Labs and its 23,000-square-foot facility in the town of Cobalt.

A news release from Canada Cobalt Works (formerly Casue Silver Resources) called this a "strategic time in the precious metals cycle" and picking up the facility offers them "multiple immediate and long-term advantages" with a high capacity bullion melting furnace to pour silver and gold dore bars.

The PolyMet building on Presley Street will become the new headquarters of Canada Cobalt. It will also be the host site for its proprietary Re-20X Process for environmentally-friendly extraction of cobalt, precious and base metals.

Canada Cobalt said the building has nearby rail access and is close to its Beaver exploration property outside of town and is 85 kilometres away from their Castie Mine project near Gowganda.

PolyMet is a well-known, well-established and diversified sampling and analytical operation that provides commercial assaying, crushing, screening, grinding, bulk sampling, upgrading and smelting services all in one location.

Gino Chitaroni, PolyMet's president and majority owner, formed the company in 2000.

Chitaroni and his team will be retained on contracts with share-based incentive clauses related to certain business milestones over the next 12 months.

"This deal builds dramatically on Canada Cobalt's current competitive advantages and opportunities--technological, on the...