E2 Metals Limited has agreed to purchase Cobalt Magnetic Pty Ltd and its two exploration tenements covering a proposed Cootamundra Cobalt-Nickel Project in the Riverina.

E2 Metals announced to the Australian Stock Exchange that it would buy out Cobalt Magnetic for $1.5 million plus shares last week.

Based out of Melbourne, E2 Metals generally focuses on gold mining projects and the proposed cobalt and nickel mine project is still being evaluated by the company.

Any work to extract the resources is expected to be a long way off as further exploration is needed to ensure the mining activity is viable.

“We believe high potential exists within the tenure to discover a number of cobalt-nickel resources, however it is very early days in this project,” E2 Metals managing director Simon Peters said.

The area believed to be strong in cobalt and nickel stretches between Cootamundra and Grenfell.

Several sites have been identified across the region for further exploration, they can be found in an area five kilometres west of Cootamundra, 25 kilometres east of Young and five kilometres east Grenfell.

“The next step will be to engage landowners and stakeholders in the region to discuss the project, before we undertake any exploration activities,” Mr Peters said.

“Once we get to the point of commencing the initial exploration, it will include non-disruptive, industry-standard tests such as surveys, soil sampling and a shallow drill program,” he said.

The Cootamundra Cobalt-Nickel Project lies within a geographical area called the East Lachlan Fold Belt of NSW, which has been proven to be rich in minerals.

The East Lachlan Fold Belt also includes the Newcrest Cadia gold and copper mine located south of Orange and the Lake Cowal gold mine near West Wyalong.

Meanwhile, Jervois Mining is expanding its drilling and development of a cobalt and nickel mining project near Young.

That project borders the potential Cootamundra Cobalt-Nickel Project, the area has has been described as an emerging ‘battery metals’ district.

Demand for cobalt is being driven globally by increasing demand for sustainable, green energy options which often require the production of large-scale rechargeable batteries, along with growth in electric vehicles and various other rechargeable devices such as mobile phones and gadgets.

Cobalt is also used to produce superalloys, critical in the defence and aerospace industries, and nickel is used in the production of stainless steel and other alloys.

E2 Metals is also currently undertaking exploration activities for gold at the Mount Hope project in the Cobar basin in the state’s west.

E2’s purchase of Colbalt Magnetic is expected to be completed in late August once approved by shareholders.