(TheNewswire)
Coquitlam, BC – TheNewswire- April 14, 2022 - Canada Silver Cobalt Works Inc. (TSXV:CCW) (OTC:CCWOF) (Frankfurt:4T9B) (the" Company " or " Canada Silver Cobalt ") announces that ithas 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 theOffering, the Company issued 7,468,000 units (“ Units ”) at a priceof $0.25 per Unit, 8,682,500 flow-through units (“ FT Units ”) at aprice 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 wasconducted on a “best efforts” agency basis and was led by Research Capital Corporation, as solebookrunner, 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 FTUnit consists of one flow-through Common Share (a “ FT Share ”) thatwill qualify as a “flow-through share” within the meaning of the Income Tax Act (Canada) (the “ TaxAct ”) and one Warrant. Each QFT Unit consistsof one Quebec flow-through Common Share (a “ QFT Share ”) thatwill qualify as a “flow-through share” within the meaning of theTax Act and the TaxationAct (Québec) and one Warrant. Each Warrantentitles its holder to purchase one additional Common Share at anexercise price of $0.32 per share at any time up to 36 monthsfollowing the closing of the Offering.
Canada Silver Cobalt will use the net proceeds from theOffering for continued exploration activities, working capital andgeneral corporate purposes. The gross proceeds from the issue and saleof the FT Units and QFT Units will be used to incur CanadianExploration Expenses and “flow-through mining expenditures” asdefined in the Tax Act and the Taxation Act (Quebec) on the Company’sCastle property and Graal property, respectively, on or beforeDecember 31, 2023 and renounced with an effective date no later thanDecember 31, 2022 to the initial purchasers of FT Units and QFT Unitsin an aggregate amount not less than the gross proceeds from the saleof the FT Units and QFT Units.
The Units, FT Units and QFT Units have a hold period offour months and one day from the closing of the Offering.
In connection with the Offering, the Company paid theAgents a cash commission of $422,882, representing 7% of the grossproceeds from the Offering, and issued compensation warrants to theAgents entitling them to purchase up to 1,572,235 Units at an exerciseprice of $0.25 for a period of three years from closing of theOffering.
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 60,000m 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 14 battery metals properties inNorthern Quebec where it is currently drilling and the prospective1,000-hectare Eby-Otto gold property close to Agnico Eagle’shigh-grade Macassa Mine near Kirkland Lake, Ontario where it will beexploring 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 gravity concentrates on site, a processingfacility (TTL Laboratories) in the town of Cobalt, and a proprietaryhydrometallurgical process known as Re-2Ox (for the creation oftechnical-grade cobalt sulphate as well as nickel-manganese-cobalt(NMC) formulations), Canada Silver Cobalt is strategically positionedto become a Canadian leader in the silver-cobalt space. Moreinformation 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
This news release may containforward-looking statements which include, but are not limited to,comments regarding the use of proceeds from the Offering and commentsthat involve other future events and conditions, which are subject tovarious risks and uncertainties. Except for statements of historicalfacts, comments that address the use of proceeds from the Offering,resource potential, upcoming work programs, geologicalinterpretations, receipt and security of mineral property titles,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. General business conditions are factors that could causeactual results to vary materially from forward-looking statements. Adetailed discussion of the risk factors encountered by Canada SilverCobalt is available in the Company’s Annual Information Form datedJuly 19, 2021 for the fiscal year ended December 31, 2020 availableunder the Company’s profile on SEDAR at www.sedar.com.
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