/NOT FOR DISSEMINATION IN OR INTO THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES/
COQUITLAM, BC, April 8,
2022 /CNW/ - Canada Silver Cobalt Works
Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the "Company" or
"Canada Silver Cobalt") announces that it has agreed with
Research Capital Corporation, as sole bookrunner, and together with
Canaccord Genuity Corp. as co-lead agents (together, the
"Agents"), to increase the size of the previously
announced best-efforts basis, private placement offering (the
"Offering") to $5,500,000 in
gross proceeds to the Company. The Offering consists of a
combination of: (i) units of the Company (the "Units")
at a price of $0.25 per Unit, (ii)
flow-through units of the Company (the "FT Units") at a
price of $0.27 per FT Unit, and
(iii) Quebec flow-through units of the Company (the "QFT
Units") at a price of $0.29 per
QFT Unit.
Each Unit will consist of one common share of the Company (a
"Common Share") and one common share purchase warrant (a
"Warrant"). Each FT Unit will consist of one flow-through
Common Share (a "FT Share") that will qualify as a
"flow-through share" within the meaning of subsection 66(15) of the
Income Tax Act (Canada) (the "Tax
Act") and one Warrant. Each QFT Unit will consist of one
Quebec flow-through Common Share
(a "QFT Share") that will qualify as a "flow-through share"
within the meaning of subsection 66(15) of the Tax Act and section
359.1 of the Taxation Act (Québec) and one Warrant. Each
Warrant shall entitle the holder thereof to purchase one Common
Share (a "Warrant Share") at an exercise price of
$0.32 per Warrant Share at any time
up to 36 months following the closing of the Offering.
The Agents will have an option (the "Agents' Option") to
offer for sale up to an additional 15% of the number of Units, FT
Units and/or QFT Units sold in the Offering at the Offering Price,
which Agents' Option is exercisable, in whole or in part, at any
time up to 48 hours prior to the closing of the Offering.
The net proceeds from the sale of Units will be used for
continued exploration activities, and for working capital and
general corporate purposes. The gross proceeds from the issue and
sale of the FT Units and QFT Units will be used to incur Canadian
Exploration Expenses and "flow-through mining expenditures" as
defined in subsection 127(9) of the Tax Act and under section
359.1 of the Taxation Act (Quebec) (the "Qualifying
Expenditures") on the Company's Castle property and Graal
property, which will be incurred on or before December 31, 2022 and renounced with an effective
date no later than December 31, 2022
to the initial purchasers of FT Units and QFT Units in an aggregate
amount not less than the gross proceeds raised from the Offering of
FT Units and QFT Units. If the Qualifying Expenditures are reduced
by the Canada Revenue Agency, the Company will indemnify each FT
Unit and QFT 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.
The Offering is scheduled to close on or about April 14, 2022, or such earlier or later date as
agreed upon between the Company and the Agents (the
"Closing") and is subject to certain conditions including,
but not limited to, the receipt of all necessary approvals
including the approval of the TSX Venture Exchange. The Units, FT
Unit and QFT Unit to be issued under the Offering will have a hold
period of four months and one day from Closing.
The securities to be issued under the Offering will be offered
by way of private placement in each of the provinces of
Canada, and such other
jurisdictions as may be determined by the Company, in each case,
pursuant to applicable exemptions from the prospectus requirements
under applicable securities laws.
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.
The Company also has 14 battery metals properties in
Northern Quebec where it is
currently drilling and the prospective 1,000-hectare Eby-Otto gold
property close to Agnico Eagle's high-grade Macassa Mine near
Kirkland Lake, Ontario where it
will be exploring in 2022.
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
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Caution Regarding Forward-Looking Statements
This news release contains "forward-looking information"
within the meaning of applicable Canadian securities legislation.
"Forward-looking information" includes, but is not limited to,
statements with respect to the activities, events or developments
that the Company expects or anticipates will or may occur in the
future, including the expectation that the Offering will close in
the timeframe and on the terms as anticipated by management.
Generally, but not always, forward-looking information and
statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes" or the
negative connotation thereof or variations of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative connation thereof.
Such forward-looking information and statements are based on
numerous assumptions, including among others, that the Company will
complete Offering in the timeframe and on the terms as anticipated
by management. Although the assumptions made by the Company in
providing forward-looking information or making forward-looking
statements are considered reasonable by management at the time,
there can be no assurance that such assumptions will prove to be
accurate and actual results and future events could differ
materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Company's plans or expectations include risks
relating to the failure to complete the Offering in the timeframe
and on the terms as anticipated by management, market conditions
and timeliness regulatory approvals. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially from those contained in the
forward-looking information or implied by forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that forward-looking information and statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated, estimated or intended.
Accordingly, readers should not place undue reliance on
forward-looking statements or information.
SOURCE Canada Silver Cobalt Works Inc.