Canada Silver Cobalt Works Inc has announced a marketed public offering of units and flow-through (FT) units to raise gross proceeds of up to $3 million to help fund working capital and exploration expenses on its Castle property in Northern Ontario.
The company said it has entered into an agreement with Research Capital Corporation to act as sole bookrunner and, together with Canaccord Genuity (TSX:CF, LSE:CF) Corp, as co-lead agent for the offering, which is expected to close on or about October 20.
READ: Canada Silver Cobalt Works hits high-grade intercepts at the Big Silver zone on its Castle East property
Each unit will comprise one common share and one common share purchase warrant, while each FT unit will comprise one flow-through common share and one warrant. Each warrant will entitle the holder to buy an additional comment share at an exercise price of $0.25 following the closing of the offering, it said.
“Canada Silver Cobalt will use the net proceeds from the offering of the units for working capital and general corporate purposes and will use the proceeds from the offering of the FT units to incur Canadian exploration expenses on the company’s Castle property,” the company said in a statement.
“The agents will have an option, exercisable in whole or in part at any time prior to the closing of the offering, to increase the number of units, FT units, and/or the components thereof purchased and sold under the offering for additional gross proceeds to the company of up to $3 million.”
The agents will also have the option to increase the size of the offering by up to an additional 15% in units and/or FT units, 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, it added.
The company expects to file a prospectus supplement to its previously filed short form base shelf prospectus in connection with the offering with the securities regulators in each province of Canada except Québec.
Canada Silver Cobalt Works recently discovered a major high-grade silver vein system at Castle East located 1.5 kilometres (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 per ton silver. A drill program is underway to expand the size of the deposit with an update to the resource estimate scheduled for the first quarter of 2022.
The company’s flagship silver-cobalt Castle mine and 78 square km Castle property feature strong exploration upside for silver, cobalt, nickel, gold, and copper. The company is strategically positioned to become a Canadian leader in the silver-cobalt space.
Contact the author at stephen.gunnion@proactiveinvestors.com