(TheNewswire)
Coquitlam, BC, - TheNewswire - October 4th,2022 - Canada Silver Cobalt Works Inc. (TSXV:CCW) (OTC:CCWOF)(Frankfurt: 4T9B) (the "Company" or "Canada SilverCobalt") announces that it intends todistribute an aggregate of approximately 11.75 million shares of itssubsidiary Coniagas Battery Metals Inc. (“Coniagas”) to theshareholders of Canada Silver Cobalt by way of dividend. Each of theshares will be accompanied by half of a common share purchase warrant.Each full warrant will give the holder the right to acquire oneadditional share of Coniagas at a price of $0.40 for two years. CanadaSilver Cobalt will acquire the shares as consideration for theimpending transfer to Coniagas of the Graal property in theSaguenay-Lac-St-Jean region of Québec. The Company has filed atechnical report with respect to the Graal property on SEDAR, preparedin conformity with National Instrument 43-101, Standards ofDisclosure for Mineral Projects.
There are currently 202,998,316 common shares of CanadaSilver Cobalt issued and outstanding. The proposed dividenddistribution of approximately 11.75 million shares of Coniagas willbe made on the basis of one Coniagas share and half-warrant for every17.27 shares of Canada Silver Cobalt on a date to be selected as thedividend record date. The final ratio for the dividend distributionmay change as a result of changes to the number of issued andoutstanding common shares of the Company between the date of this newsrelease and the dividend record date. Coniagas intends to apply forlisting on a Canadian stock exchange and to file a non-offeringprospectus with the Canadian provincial securities commissions toqualify the distribution of the Coniagas shares and warrants to theshareholders of the Company.
Coniagas also intends to raise approximately $1,250,000by way of private placement to “accredited investors” and othersby issuing up to 5,000,000 shares at a price of $0.25 per share. Eachshare will be accompanied by one warrant, which may be exercised fortwo years at a price of $0.40 per share. Coniagas intends to use theproceeds from the proposed private placement for exploration on theGraal property and for working capital.
It is expected that after the proposed dividenddistribution and private placement, Canada Silver Cobalt will holdapproximately 36.7% of Coniagas’ outstanding shares plus warrants aswill the shareholders of Canada Silver Cobalt in the aggregate.Investors in the proposed private placement will hold an aggregate ofapproximately 15.6% of Coniagas’ outstanding shares plus warrants,with the balance of approximately 11% of the Coniagas shares to beheld by its directors and officers and by a third-party vendor ofcertain of the claims comprising the Graal property.
The Company will provide updates on the proposeddistribution of the Coniagas shares and warrants to the shareholdersof the Company, including the dividend record date and dividend ratio,and on the proposed listing of Coniagas on a Canadian stock exchange.The proposed distribution by the Company of the Coniagas shares andwarrants and the private placement by Coniagas are subject toregulatory approval, including that of the TSX VentureExchange.
Frank J. Basa, P.Eng., CEO of Canada Silver Cobalt, whois to become Coniagas founding CEO and President, stated,"Coniagas will establish itself as a provider of MAAS (Metal as aService) to the global EV battery market. Early exploration of thespinout Graal property, at 6,100 hectares in Quebec, has alreadyyielded significant results in nickel, copper, and cobalt over a6-kilometer strike length. Historical drilling had previouslyindicated a potential target of near-surface tonnage of 30 – 60million tonnes with a grade range of 0.60 – 0.80% nickel, 0.30 –0.50% copper and 0.10 – 0.15% cobalt in the MHY section (see Companypress release of April 4, 2022). Thisestimation does not take into account any potential at depth and excludes newly discovered mineralization. Please note that the quantity and grade of thispotential target calculation is conceptual in nature, and there hasbeen insufficient exploration to define a mineral resource. It isuncertain if further exploration will result in the target beingdelineated as a mineral resource. The potential target primaryevaluation is a calculation of the length multiplied by the thickness of intersection by the density of 3.3to 4.0 t/m3 multiplied by the depth extension of 150 to 250m based onhistorical drill holes.
“Coniagas is well-positioned to deliver ongoingresults in the coming months at the Graal property inQuebec."
Frank J. Basa further added, "Canada Silver Cobaltwill become a focused, high-grade silver and gold exploration companyin the historic Cobalt camp and on the Cadillac-Larder-Lake Breakwhere millions of ounces of silver and gold have been mined over ahundred-year time frame. The Castle Property, at 7,800 hectares,includes the Castle Silver Mine that produced 9,000,000 ounces of the70,000,000 ounces of silver produced in the Gowganda mining districtof the Cobalt camp. The Eby-Otto property, at nearly 1,200 hectares,is located next to the Macassa Gold Mine which has produced 24,000,000million ounces of gold and is currently operated by Agnico-EagleMines."
Qualified Person
The technical information in this newsrelease was reviewed andapproved by Frank J. Basa, P.Eng., a qualified person in accordance with National Instrument43-101.
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 at its Lowney-Lac Edouard property; and (2) theprospective nearly 1,200-hectare Eby-Otto gold property close toAgnico Eagle’s high-grade Macassa Mine near Kirkland Lake, Ontariowhere it is exploring in 2022.
Canada Silver Cobalt’s flagship silver-cobalt Castlemine within the 78 sq. km Castle Property features strong explorationupside for silver, cobalt, nickel, gold, and copper. With undergroundaccess at the fully-owned Castle Mine, an exceptional high-gradesilver discovery at Castle East, a pilot plant to produce cobalt-richgravity concentrates, 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 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 regarding Canada Silver Cobalt Works Inc.(the “Company”) and Coniagas Battery Metals Inc. (“Coniagas”)which include, but are not limited to, comments that involve futureevents and conditions, which are subject to various risks anduncertainties. Except for statements of historical facts, commentsthat address the proposed distribution of common shares and commonshare purchase warrants of Coniagas to the shareholders of the Companyby way of dividend, the proposed private placement by Coniagas andproposed listing of Coniagas on a Canadian stock exchange, resourcepotential, upcoming work programs, geological interpretations, receiptand security of mineral property titles, availability of funds, andothers are forward-looking. No assurance can be given that any of theforegoing will be achieved. Forward-looking statements are notguarantees of future performance and actual results may varymaterially from those statements. General business conditions arefactors that could cause actual results to vary materially fromforward-looking statements. A detailed discussion of the risk factorsencountered by the Company is available in the Company’s AnnualInformation Form dated July 19, 2021 for the fiscal year endedDecember 31, 2020 available under the Company’s profile on SEDAR atwww.sedar.com.
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