(TheNewswire)
Coquitlam, BC – TheNewswire - November24,2022 - Canada Silver CobaltWorks Inc. (TSXV:CCW) (OTC:CCWOF)(Frankfurt:4T9B) (the "Company" or "Canada SilverCobalt") announces that further to its news release datedSeptember 19, 2022, it is amending the terms of an aggregate of 3,798,800 outstanding common share purchasewarrants (“Warrants”) issued pursuant to a private placement thatclosed on November 25, 2020. The Warrants have an exercise price of$0.80 and an expiry date of November 27, 2022. The Company will amendthe Warrant exercise price to $0.1125 per share and extend the Warrantexpiry date by two years to November 27, 2024.
The Warrants, as amended, will be subject to anaccelerated expiry provision such that if for any ten consecutivetrading days (the “Premium Trading Days”) during the unexpiredterm of the Warrants, the closing price of the Company’s shares onthe TSX Venture Exchange exceeds $0.14, representing the amendedWarrant exercise price of $0.1125 plus 25%, the exercise period of theWarrants will be reduced to 30 days, starting seven days after thelast Premium Trading Day. The Company will announce any suchaccelerated expiry date by press release. All other terms of theWarrants remain unchanged.
The Company has obtained consent from all of thewarrant holders to amend the Warrants. The amendment of the Warrantsis subject to TSX Venture Exchange (the “Warrant AmendmentApproval”).
Warrant ExerciseIncentive Program
The Company also announces that if it obtains WarrantAmendment Approval, the Company will institute a warrant exerciseincentive program (the “Incentive Program”) designed to encouragethe early exercise of the 3,997,333 Warrants. Under the IncentiveProgram, the Company will offer an inducement to each Warrant holderthat exercises its Warrants during a period of 30 days from receipt ofWarrant Amendment Approval, by the issuance of one additional commonshare purchase warrant (an “Incentive Warrant”) for each Warrantexercised during the 30-day period. Each Incentive Warrant willentitle the holder to purchase one additional common share of theCompany at a price of $0.15 for a period of one year from the date ofWarrant Amendment Approval.
The Incentive Program will commence upon receipt ofWarrant Amendment Approval and will expire 30 days thereafter at 4:00p.m. (Vancouver time). The Incentive Warrants will include anaccelerated expiry provision such that if, for any ten consecutivetrading days during the one-year term of the Incentive Warrants, theclosing price of the Company’s shares on the TSX Venture Exchange isat least $0.15, the exercise period of the Incentive Warrants will bereduced to 30 days. The Company will announce any such acceleratedexpiry date of the Incentive Warrants by press release.
The Company intends to issue an updating news releaseupon receipt, if any, of Warrant Amendment Approval and commencementof the Incentive Program, outlining the terms and conditions and themethod of exercising Warrants pursuant to the Incentive Program. The Incentive Program is subject to approval bythe TSX Venture Exchange.
About Canada Silver Cobalt WorksInc.
Canada Silver Cobalt Works Inc. recently discovered amajor high-grade silver vein system at Castle East located 1.5 km fromits 100%-owned, past-producing Castle Mine near Gowganda in theprolific and world-class silver-cobalt mining district of NorthernOntario. The Company has completed a 60,000 m drill program aimed atexpanding the size of the deposit with an update to the resourceestimate underway.
In May 2020, based on a small initial drill program,the Company published the region’s first 43-101 resource estimatethat contained a total of 7.56 million ounces of silver in Inferredresources, comprising very high-grade silver (8,582 grams per tonneun-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 verticaldepth of approximately 400 meters. Note that mineral resources thatare 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, NI43-101 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: (1) 14 battery metals propertiesin Northern Quebec where it has recently completed an almost15,000-metre drill program on the Graal property and an airborne VTEMgeophysical survey is being conducted at its Lowney-Lac Edouardproperty; and (2) the prospective 1,000-hectare Eby-Otto gold propertyclose to Agnico Eagle’s high-grade Macassa Mine near Kirkland Lake,Ontario where it is exploring in 2022.
Canada Silver Cobalt’s flagship silver-cobalt Castlemine and 78 sq. km Castle Property feature strong exploration upsidefor silver, cobalt, nickel, gold, and copper. With underground accessat the fully-owned Castle Mine, an exceptional high-grade silverdiscovery at Castle East, a pilot plant to produce cobalt-rich gravityconcentrates, a processing facility (TTL Laboratories) in the town ofCobalt, and a proprietary hydrometallurgical process known as Re-2Ox(for the creation of technical-grade cobalt sulphate as well asnickel-manganese-cobalt (NMC) formulations), Canada Silver Cobalt isstrategically positioned to become a Canadian leader in thesilver-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
Neither the TSX Venture Exchange norits Regulation Service Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
Caution RegardingForward-Looking Statements
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release. This news release may containforward-looking statements which include, but are not limited to,comments that involve future events and conditions, which are subjectto various risks and uncertainties. Except for statements ofhistorical facts, comments that address resource potential, upcomingwork programs, geological interpretations, receipt and security ofmineral property titles, availability of funds, and others areforward-looking. Forward-looking statements are not guarantees offuture performance and actual results may vary materially from thosestatements. General business conditions are factors that could causeactual results to vary materially from forward-looking statements. A detailed discussion ofthe risk factors encountered by Canada Silver Cobalt is available inthe Company’s Annual Information Form dated July 19, 2021 for thefiscal year ended December 31, 2020 available under the Company’sprofile on SEDAR at www.sedar.com.
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