Canada Silver Cobalt Announces upsized $6.5 Million Marketed Public Offering of Units and Flow-Through Units

Canada Silver Cobalt Announces upsized $6.5 Million Marketed Public Offering of Units and Flow-Through Units

by ahnationtalk on October 20, 202174 Views

Coquitlam, BC,  Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the “Company” or “Canada Silver Cobalt”) announces that it has entered into an agreement with Research Capital Corporation to increase the size of its previously-announced marketed public offering (the “Offering”). The maximum size of the Offering has been increased to $6.5 million from the previous  maximum of $3 million. The Offering consists of units of the Company (the “Units”) at a price of $0.21 per Unit  and flow-through units of the Company (the “FT Units”) at a price of $0.23 per FT Unit. The Offering is being conducted on a “best efforts” agency basis co-led by Research Capital Corporation, as sole bookrunner, and  Canaccord Genuity Corp. as co-lead agents (together, the “Agents”).

As previously announced, each Unit will be comprised of one common share of the Company (a “Common  Share”) and one Common Share purchase warrant of the Company (a “Warrant”). Each FT Unit will be  comprised of one flow-through Common Share that will qualify as a “flow-through share” within the meaning  of subsection 66(15) of the Income Tax Act (Canada) and one Warrant. Each Warrant will entitle the holder thereof to purchase one additional Common Share at an exercise price of $0.25 for a period of 24 months following closing of the Offering.

The Agents will have an option (the “Over-Allotment Option”) to increase the size of the Offering by up to an additional 15% in Units, FT Units and/or the components thereof, to cover over-allotments and for market  stabilization purposes, by giving written notice of the exercise of the Over-Allotment Option to the Company at any time up to 30 days following Closing.

Canada Silver Cobalt will use the net proceeds from the Offering of the Units for continued exploration activities, and for working capital and general corporate purposes. The Company will use the proceeds from  the issue and sale of the FT Units to incur Canadian Exploration Expenses and “flow-through mining expenditures” as defined in the Income Tax Act (Canada) (the “Qualifying Expenditures”) on the Company’s  Castle property, which will be incurred on or before December 31, 2022 and renounced with an effective date  no later than December 31, 2021 to the initial purchasers of FT Units. If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each FT Unit subscriber for any  additional taxes payable by such subscriber as a result of the Company’s failure to renounce the Qualifying  Expenditures as agreed.

Closing of the Offering is expected to take place on or about October 25, 2021, or on such other date as agreed  upon by the Company and the Agents. Completion of the Offering is subject to the receipt of all necessary  regulatory approvals, including that of the TSX Venture Exchange, and to the conditions set out in the agency
agreement to be entered into between the Company and the Agents.

The Company expects to file a prospectus supplement to its previously filed short form base shelf prospectus  dated September 7, 2021 in connection with the Offering with the securities regulators in each province of  Canada except Québec. The prospectus supplement, when filed, will contain important additional information about the Company and the Offering. Prospective investors should read the prospectus supplement and the  short form base shelf prospectus dated September 7, 2021, including the documents incorporated by  reference therein, and the other documents the Company has filed on SEDAR before making an investment  decision. Copies of the short form base shelf prospectus, and, when filed, the prospectus supplement to be  filed in connection with the Offering, can be found on SEDAR at www.sedar.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be  any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior  to the registration or qualification under the securities laws of any such jurisdiction.

The securities being offered have not been, nor will they be, registered under the United States Securities Act  of 1933, as amended, and such securities may not be offered or sold within 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 securities laws.

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. This discovery has the highest silver resource grade
in the world, 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 of the deposit with an update to the resource estimate scheduled  for Q1 2022.

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.

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

Send To Friend Email Print Story

Comments are closed.

NationTalk Partners & Sponsors Learn More

CLOSE
CLOSE