Canada Silver Cobalt Works Inc (TSX-V:CCW, OTCQB:CCWOF) said it has closed a fully subscribed non-brokered private placement, raising gross proceeds of $1,573,000.17.
The company issued 9,754,547 Quebec flow-through units at a price of 11 cents each. The company also issued 5 million flow-through units at a price of 10 cents each, raising gross proceeds of $500,000.
Each unit consists of one flow-through common share of the company and one-half of one share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the company at an exercise price of 15 cents each, for a period of two years from closing, subject to final approval of the TSX Venture Exchange.
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The proceeds of the flow-through private placement will be used for the continued drilling of the company's Eby-Otto property located near Kirkland Lake in Ontario while the proceeds of the Quebec flow-through private placement will be used for the company's Lowney-Lac Edouard property in central Quebec.
GloRes Securities Inc., the lead finder for the financing, was paid $98,110 in cash and 923,727 finders' warrants. An additional $21,00 cash and 190,909 finder warrants were also paid to Qwest Investment Fund Management Ltd.
Canada Silver Cobalt recently discovered a major high-grade silver vein system at Castle East, located 1.5 kilometres from its 100%-owned, past-producing Castle mine near Gowganda in the prolific and world-class silver-cobalt mining district of Northern Ontario. The company has completed a 60,000-metre drill program aimed at expanding the size of the deposit with an update to the resource estimate underway.
Contact the author at jon.hopkins@proactiveinvestors.com