CANADA SILVER COBALT ANNOUNCES MARKETED PRIVATE PLACEMENT INCREASED BY $5.5 MILLION IN UNITS AND PASSIVE UNITS

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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 entered into an agreement with Research Capital Corporation, as sole bookrunner, and with Canaccord Genuity Corp. as co-lead agents (together, the “Officers“), to increase the size of the previously announced best efforts private placement offering (the “Offer“) for $5,500,000 as gross proceeds for the Company. The Offering consists of a combination of: (i) shares of the Company (the “Units“) at the price of $0.25 per Unit, (ii) Flow-Through Units of the Partnership (the “FT units“) at the price of $0.27 per FT Unit, and (iii) the Quebec flow-through shares of the Company (the “QFT units“) at the price of $0.29 per QFT unit.

Each Unit will consist of one ordinary share of the Company (a “Ordinary share“) and one common share purchase warrant (a “To guarantee“). Each FT Unit will consist of one flow-through common share (one “FT Sharing“) which will qualify as a “flow-through share” within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the “Tax Act”) and a warrant. Each QFT unit will consist of one Quebec flow-through common share (a “QFT share“) which 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 (Quebec) and a Warrant. Each Warrant subscription will entitle its holder to acquire one Common Share (a “Warrant action“) at an exercise price of $0.32 per Warrant Share at any time up to 36 months after the closing of the offering.

Agents will have an option (the “Agent options“) to offer for sale up to an additional 15% of the number of Units, FT Units and/or QFT Units sold under the Offer at the Offer Price, which Agents Option may be exercised, in whole or in part, at any time up to 48 hours before the closing of the Offer.

The net proceeds from the sale of units will be used for further exploration activities, as well as 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 exploration expenditures in Canada and “flow-through mining expenditures” as defined in subsection 127(9) of the Act. tax and section 359.1 of the tax law (Quebec) (the “Eligible expenses“) on the Castle property and the Graal property of the Company, which will be committed no later than December 31, 2022 and waived with an effective date no later than December 31, 2022 to initial purchasers of FT Units and QFT Units for an aggregate amount not less than the gross proceeds of the offering of FT Units and QFT Units. If the Qualifying Expenses are reduced by the Canada Revenue Agency, the Company will indemnify each subscriber to the FT Unit and the QFT Unit for any additional tax payable by such subscriber as a result of the failure of the Company to waive the Expenses. Eligible as agreed.

The Offer is scheduled to close on or about April 14, 2022or such earlier or later date agreed between the Company and the Agents (the “Closing“) and is subject to certain conditions, including, but not limited to, obtaining all necessary approvals, including the approval of the TSX Venture Exchange. The Units, FT Units and QFT Units to be issued under the offering will have a hold period of four months and one day from closing.

The securities to be issued pursuant to the placement will be offered by way of private placement in each of the provinces of Canadaand such other jurisdictions as may be determined by the Company, in each case, pursuant to applicable exemptions from prospectus requirements under applicable securities laws.

The securities offered have not been and will not be registered in the United States Securities Act of 1933as amended, and such securities may not be offered or sold in United States or to, or on behalf of or for the benefit of US Persons absent registration or applicable exemption from US registration requirements and applicable US state securities laws.

About Canada Silver Cobalt Works Inc.

Canada Silver Cobalt Works Inc. recently discovered a significant high-grade silver vein system at Castle East, located 1.5 km from its former 100% owned Castle Mine, near gowganda in the prolific, world-class silver-cobalt mining district of Northern Ontario. This discovery has the highest silver resource grade in the world, with recent drill intersections of up to 89,853 grams/tonne silver (2,621 oz/tonne Ag). A drilling program is underway to expand the size of the deposit with an updated resource estimate scheduled for the first quarter of 2022.

In May 2020Based on an initial small drilling program, the Company released the area’s first 43-101 resource estimate which contained a total of 7.56 million ounces of silver in inferred resources, including silver. very high-grade silver (8,582 grams per uncut ton or 250.2 oz/ton) in 27,400 tons of material from two sections (1A and 1B) of the Castle East Robinson Zone, beginning at a vertical depth of approximately 400 metres. Note that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Please see the Canada Silver Cobalt Works press release May 28, 2020, for resource estimation. Report reference: Rachidi, M. 2020, NI 43-101 Technical Report Mineral Resource Estimate for Castle East, Robinson area, Ontario, Canadawith an effective date of May 28, 2020and a date of signature of July 13, 2020.

The Company also owns 14 battery metal properties in Northern Quebec where it currently drills and the potential 1,000 hectares EbyOtto gold property near Agnico Eagle’s high-grade Macassa mine Kirkland Lake, Ontario where he will explore in 2022.

Canada Silver Cobalt’s flagship Castle silver-cobalt mine and the 78 km2 Castle property have strong exploration potential for silver, cobalt, nickel, gold and copper. With underground access to the wholly-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 hydrometallurgical process known as Re-2Ox (for the creation of technical grade cobalt sulfate as well as nickel-manganese-cobalt (NMC) formulations), Canada Silver Cobalt is strategically positioned to become a leader Canadian leader in silver-cobalt. More information at www.canadasilvercobaltworks.com.

“Frank J. Basa”
Frank J. Basaeng.
Chief executive officer

Neither the TSX Venture Exchange nor its Regulation Services 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 press release contains “forward-looking information” within the meaning of applicable Canadian securities laws. “Forward-looking information” includes, but is not limited to, statements concerning activities, events or developments that the Company expects or anticipates will or may occur in the future, including the expectation that the Offer will be closed within the period and under the conditions provided by management. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is planned”, “budget”, “expected”, “estimates”, “forecasts”, “intends”, “anticipates” or “believes” or the negative connotation thereof or variations of these words and phrases or states that certain actions, events or results “may”, “could “, “would”, “could” or “will be taken”, “will occur” or “will be achieved” or their negative connation.

Such forward-looking information and statements are based on numerous assumptions, including, among other things, that the Company will complete the Offer on the time and on the terms 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 correct and actual results and future events may differ significantly. of those anticipated in such statements.

Important factors that could cause actual results to differ materially from the Company’s plans or expectations include the risks relating to the Offer not being completed within the time and on the terms anticipated by management, market conditions and timely regulatory approvals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in or implied by the forward-looking information, there may be other factors that cause the results are not those intended, 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 any forward-looking statements or information.

SOURCE Canada Silver Cobalt Works Inc.

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