(TheNewswire)
Coquitlam, BC – TheNewswire- October 12, 2021 - Canada Silver Cobalt WorksInc. (TSXV:CCW) (OTC:CCWOF) (Frankfurt: 4T9B)(the " Company " or " Canada Silver Cobalt ") announces that ithas entered into an agreement with Research Capital Corporation to actas sole bookrunner and together with Canaccord Genuity Corp. asco-lead agents (together, the “ Agents ”), in connection with a marketedpublic offering (the “ Offering ”) for aggregate gross proceeds ofup to $3,000,000 in a combination of: (i) units of the Company (the“ Units ”) at a price of $0.21 per Unit and(ii) flow-through units of the Company (the “ FT Units ”) at aprice of $0.23 per FT Unit.
Each Unit will be comprised of one common share of theCompany (a " CommonShare ") and one Common Share purchase warrant of the Company (a" Warrant "). Each FT Unit will be comprised of one flow-throughCommon Share that will qualify as a“flow-through share” within the meaning of subsection 66(15) ofthe Income TaxAct (Canada) and one Warrant. Each Warrantwill entitle the holder thereof to purchase one additional CommonShare at an exercise price of $0.25 for a periodof 24 months followingclosing of the Offering .
Canada Silver Cobalt will use the net proceeds from theOffering of the Units for working capital and general corporatepurposes and will use the proceeds from the Offering of the FT Unitsto incur Canadian Exploration Expenses on the Company’s Castleproperty.
The Agents will have an option, exercisable in whole orin part at any time prior to closing of the Offering, to increase thenumber of Units, FT Units, and/or the components thereof purchased andsold under the Offering for additional gross proceeds to the Companyof up to $3,000,000.
The Agents will also have the option (the“ Over-AllotmentOption ”) to increase the size of the Offeringby up to an additional 15% in Units and/or FT Units, to coverover-allotments and for market stabilization purposes, by givingwritten notice of the exercise of the Over-Allotment Option to theCompany at any time up to 30 days following Closing.
The proceeds from the issue and sale of the FT Unitswill be used to incur Canadian Exploration Expenses and“flow-through mining expenditures” as defined in the Income Tax Act (Canada) (the " QualifyingExpenditures "), which will be incurred onor before December 31, 2022 and renounced with an effective date nolater than December 31, 2021 to the initial purchasers of FT Units inan aggregate amount not less than the gross proceeds raised from theOffering of FT Units., If the Qualifying Expenditures are reduced bythe Canada Revenue Agency, the Company will indemnify each FT Unitsubscriber for any additional taxes payable by such subscriber as aresult of the Company’s failure to renounce the QualifyingExpenditures as agreed.
Closing of the Offering is expected to take place on orabout October 20, 2021, or on such other date as agreed upon by theCompany and the Agents. Completion of the Offering is subject to thereceipt of all necessary regulatory approvals, including that of theTSX Venture Exchange, and to the conditions set out in the agencyagreement to be entered into between the Company and theAgents.
The Company expects to file a prospectus supplement toits previously filed short form base shelf prospectus datedSeptember 7, 2021 in connection with the Offering with the securitiesregulators in each province of Canada except Québec. The prospectussupplement, when filed, will contain important additional informationabout the Company and the Offering. Prospective investors should readthe prospectus supplement and the short form base shelf prospectusdated September 7, 2021, including the documents incorporated byreference therein, and the other documents the Company has filed onSEDAR before making an investment decision. Copies of the short formbase shelf prospectus, and, when filed, the prospectus supplement to be filed in connection with theOffering, can be found on SEDAR at www.sedar.com .
This press release shall not constitute an offer tosell or the solicitation of an offer to buy, nor shall there be anysale of these securities, in any jurisdiction in which such offer,solicitation or sale would be unlawful prior to the registration orqualification under the securities laws of any suchjurisdiction.
The securities being offered have not been, nor willthey be, registered under the United States Securities Act of 1933 , as amended, and such securities may not be offered or soldwithin the United States or to, or for the account or benefit of, U.S.persons absent registration or an applicable exemption from U.S.registration requirements and applicable U.S. state securitieslaws.
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. This discovery has the highest silver resource grade in theworld, with recent drill intercepts of up to 89,853 grams/tonne silver(2,621 oz/ton Ag). A drill program is underway to expand the size ofthe deposit with an update to the resource estimate scheduled for Q12022.
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.
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 on site, a processing facility (TTL Laboratories) in thetown of Cobalt, and a proprietary hydrometallurgical process known asRe-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 atwww.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
This news release may containforward-looking statements which include, but are not limited to,comments regarding the Offering and comments that involve other futureevents and conditions, which are subject to various risks anduncertainties. Except for statements of historical facts, commentsthat address the Offering, resource potential, upcoming work programs,geological interpretations, receipt and security of mineral propertytitles, future financings, availability of funds, and others areforward-looking. Forward-looking statements are not guarantees offuture performance and actual results may vary materially from thosestatements. No assurance can be given that the Offering will close onthe terms and conditions set out in this news release or at all.General business conditions are factors that could cause actualresults to vary materially from forward-looking statements. A detaileddiscussion of the risk factors encountered by Canada Silver Cobalt isavailable in the Company’s Annual Information Form dated July 19,2021 for the fiscal year ended December 31, 2020 available under theCompany’s profile on SEDAR at www.sedar.com .
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