Follow Us! Like Our Page!

Canada Silver Cobalt Completes $6.0 million Private Placement

Press Release

Coquitlam, BC, April 14, 2022 – Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the “Company” or “Canada Silver Cobalt”) announces that it has closed its previously-announced upsized brokered private placement (the “Offering”) by raising gross proceeds of approximately $6.04 million, including following partial exercise of an agents’ option to increase the size of the Offering. At the closing of the Offering, the Company issued 7,468,000 units (“Units”) at a price of $0.25 per Unit, 8,682,500 flow-
through units (“FT Units”) at a price of $0.27 per FT Unit, and 6,310,000 Quebec flow-through units (“QFT Units”) at a price of $0.29 per QFT Unit.

The Offering was conducted on a “best efforts” agency basis and was led by Research Capital Corporation, as sole bookrunner, together with Canaccord Genuity Corp. as co-lead agents (collectively, the “Agents”).

Each Unit consists of one common share (a “Common Share”) and one common share purchase warrant (a “Warrant”). Each FT Unit consists of one flow-through Common Share (a “FT Share”) that will qualify as a “flow-through share” within the meaning of the Income Tax Act (Canada) (the “Tax Act”) and one Warrant. Each QFT Unit consists of one Quebec flow-through Common Share (a “QFT Share”) that will qualify as a “flow-through share” within the meaning of the Tax Act and the Taxation Act (Québec) and one Warrant. Each
Warrant entitles its holder to purchase one additional Common Share at an exercise price of $0.32 per share at any time up to 36 months following the closing of the Offering.

Canada Silver Cobalt will use the net proceeds from the Offering for continued exploration activities, working capital and general corporate purposes. The gross proceeds from the issue and sale of the FT Units and QFT Units will be used to incur Canadian Exploration Expenses and “flow-through mining expenditures” as defined in the Tax Act and the Taxation Act (Quebec) on the Company’s Castle property and Graal property, respectively, on or before December 31, 2023 and renounced with an effective date no later than December 31, 2022 to the initial purchasers of FT Units and QFT Units in an aggregate amount not less than the gross proceeds from the sale of the FT Units and QFT Units.

The Units, FT Units and QFT Units have a hold period of four months and one day from the closing of the Offering.

In connection with the Offering, the Company paid the Agents a cash commission of $422,882, representing 7% of the gross proceeds from the Offering, and issued compensation warrants to the Agents entitling them to purchase up to 1,572,235 Units at an exercise price of $0.25 for a period of three years from closing of the Offering.

About Canada Silver Cobalt Works Inc.

Canada Silver Cobalt Works Inc. recently discovered a major high-grade silver vein system at Castle East located 1.5 km from its 100%-owned, past-producing Castle Mine near Gowganda in the prolific and world- class silver-cobalt mining district of Northern Ontario. The Company has completed a 60,000m drill program aimed at expanding the size of the deposit with an update to the resource estimate underway.

In May 2020, based on a small initial drill program, the Company published the region’s first 43-101 resource estimate that contained a total of 7.56 million ounces of silver in Inferred resources, comprising  very high-grade silver (8,582 grams per tonne un-cut or 250.2 oz/ton) in 27,400 tonnes of material from two sections (1A and 1B) of the Castle East Robinson Zone, beginning at a vertical depth of approximately 400 meters. Note that mineral resources that are not mineral reserves do not have demonstrated economic viability. Please refer to Canada Silver Cobalt Works Press Release May 28, 2020, for the resource estimate. Report reference: Rachidi, M. 2020, NI 43-101 Technical Report Mineral Resource Estimate for Castle East, Robinson Zone, Ontario, Canada, with an effective date of May 28, 2020, and a signature date of July 13,2020.

The Company also has 14 battery metals properties in Northern Quebec where it is currently drilling and the prospective 1,000-hectare Eby-Otto gold property close to Agnico Eagle’s high-grade Macassa Mine near Kirkland Lake, Ontario where it will be exploring in 2022.

Canada Silver Cobalt’s flagship silver-cobalt Castle mine and 78 sq. km Castle Property feature strong exploration upside for silver, cobalt, nickel, gold, and copper. With underground access at the fully owned Castle Mine, an exceptional high-grade silver discovery at Castle East, a pilot plant to produce cobalt-rich gravity concentrates on site, a processing facility (TTL Laboratories) in the town of Cobalt, and a proprietary hydrometallurgical process known as Re-2Ox (for the creation of technical-grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations), Canada Silver Cobalt is strategically positioned to become a Canadian leader in the silver-cobalt space. More information at www.canadasilvercobaltworks.com

“Frank J. Basa”
Frank J. Basa, P. Eng.
Chief Executive Officer

For further information, contact:
Frank J. Basa, P.Eng.
Chief Executive Officer
416-625-2342

IBF4

 122 total views,  2 views today

NationTalk Partners & Sponsors Learn More