Dragon is acquiring the Tabac project where previous wide spaced drilling returned cobalt values in the early 1980s.

While there has been some discrepancies noted with the drilling assays from that time, Dragon considers that on the weight of geological evidence, Tabac is “potentially a significant cobalt-gold exploration target, which may have been overlooked by previous owners”.

Dragon will issue vendor Westview Resources $A50,000 cash plus shares for Tabac, with Westview having to enter into an agreement with Kalgoorlie real estate identity Peter Gianni to acquire the exploration licence application covering the ground.

The shares to be issued will see the vendor hold about 30% of Dragon given the current capital structure.

Experienced geologist Jonathan King has been appointed MD at Dragon, with King describing Tabac as “one of the most exciting exploration opportunities I have seen to date”.

Cobalt has been a commodity of interest of late for investors given its use in lithium ion batteries, and shares in Dragon more than doubled after the deal was announced.

In late morning trade Dragon shares were up over 72% at 1.9c, capitalising the company $4.2 million.