TORONTO, May 18, 2018 /CNW/ - US Cobalt Inc. (TSX-V: USCO,
OTCQB: USCFF) ("US Cobalt") and First Cobalt Corp. (TSX-V: FCC;
ASX: FCC; OTCQX: FTSSF) ("First Cobalt") are pleased to announce
that US Cobalt securityholders have overwhelmingly approved the
previously announced acquisition by First Cobalt. US Cobalt
shareholders, warrant holders and option holders voted 99.87% in
favour of the transaction, with 35.82% of eligible votes cast.
The acquisition of US Cobalt will enhance First Cobalt's
position as a vertically integrated pure-play cobalt company with
three significant North American assets: 50 past producing mines in
the Canadian Cobalt Camp, the Iron Creek Project in Idaho, USA, and the only permitted cobalt
refinery in North America capable
of producing battery materials.
The Iron Creek Project has a historic mineral resource estimate
(non-compliant with NI 43-101) of 1.3M tons grading 0.59% cobalt. A new resource
estimate is anticipated by October, 2018.
US Cobalt CEO Wayne Tisdale
commented,
"We thank securityholders for their strong support. This is
an excellent outcome that our Board of Directors believes is in the
best interests of all stakeholders. Upon completion of this
transaction, First Cobalt will be well positioned to become a
leading vertically integrated pure-play North American cobalt
company and they are fully funded to execute the 2018 budgets for
the combined company."
First Cobalt Chairman Paul
Matysek commented,
"On behalf of the Board and management, I look forward to
welcoming our new US Cobalt shareholders. Our vision is to create
the largest North American pure-play exploration and development
company in the world. With this acquisition, we have an opportunity
to fast track the Iron Creek Cobalt project into one of the first
producing cobalt mines this century. In two short years, through a
series of accretive transactions, First Cobalt has become one of
the largest land holders in the Canadian Cobalt Camp covering over
50 historic mines with associated muckpiles and acquired sought
after mineral processing facilities, including the only permitted
facility in North America capable
of producing cobalt battery materials. Our team and board are
driven every day to make our vision a reality. Watch us!"
Subject to obtaining all required regulatory and government
approvals, it is anticipated that the Transaction will be completed
on or about May 31, 2018.
About US Cobalt
US Cobalt is focused on the acquisition and development of high
grade battery metal deposits in North
America. The Iron Creek Cobalt Project, located in the
prolific Idaho Cobalt Belt, is the focus of a 40-hole, 35,000 foot
(10,700 metre) drill campaign to confirm a 1.3M ton grading 0.59% cobalt historical estimate
(non-compliant with NI 43-101) and a Resource Estimate prepared in
accordance with NI 43-101 is expected on the project in 2018.
About First Cobalt
First Cobalt aims to create the largest pure-play cobalt
exploration and development company in the world. The Company
controls more than 10,000 hectares of prospective land covering
over 50 historic mines as well as mineral processing facilities in
the Cobalt Camp in Ontario,
Canada. The First Cobalt Refinery is the only permitted
facility in North America capable
of producing cobalt battery materials. First Cobalt seeks to build
shareholder value through new discovery, mineral processing and
growth opportunities, with a focus on North America.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
On behalf of US Cobalt Inc.
Wayne Tisdale
President
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking
Statements
This news release may contain forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects", "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "will", "may", "could", "would", "might", "occur"
or "be achieved". Forward-looking statements involve risks,
uncertainties and other factors that could cause actual results,
performance and opportunities to differ materially from those
implied by such forward-looking statements. In particular,
forward-looking information included in this news release includes,
without limitation, statements regarding the completion of the
Transaction, including the anticipated results of the Transaction.
Factors that could cause actual results to differ materially from
these forward-looking statements are set forth in the management
discussion and analysis and other disclosures of risk factors for
each of First Cobalt and US Cobalt, filed on SEDAR at
www.sedar.com. Although First Cobalt and US Cobalt believe that the
information and assumptions used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on
these statements, which only apply as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed times frames or at all. Except where required by
applicable law, First Cobalt and US Cobalt disclaim any intention
or obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or
otherwise.
Historic Estimates
US Cobalt considers the cobalt and copper tonnage and grade
estimates above as historical estimates. The historical estimates
do not use categories that conform to current CIM Definition
Standards on Mineral Resources and Mineral Reserves as outlined in
National Instrument 43-101, Standards of Disclosure for Mineral
Projects ("NI 43-101") and have not been redefined to conform to
current CIM Definition Standards. They were prepared in the 1980s
prior to the adoption and implementation of NI 43-101. A qualified
person has not done sufficient work to classify the historical
estimates as current mineral resources and US Cobalt is not
treating the historical estimates as current mineral resources.
More work, including, but not limited to, drilling, will be
required to conform the estimates to current CIM Definition
Standards. Investors are cautioned that the historical estimates do
not mean or imply that economic deposits exist on the Iron Creek
property. US Cobalt has not undertaken any independent
investigation of the historical estimates nor has it independently
analyzed the results of the previous exploration work in order to
verify the accuracy of the information. US Cobalt believes that the
historical estimates are relevant to continuing exploration on the
Iron Creek property.
SOURCE US Cobalt Inc.