Canada Silver Cobalt Works Inc. (TSX-V:CCW) said that it has entered into an agreement with Research Capital Corporation to increase the size of its previously announced marketed public offering to a maximum of $6.5 million from $3 million previously.
The Canadian company, which recently discovered a major high-grade silver vein system at Castle East in the prolific silver-cobalt mining district of Northern Ontario, said the offering consists of units priced at $0.21 each, and flow-through units priced at $0.23 each.
The company said the offering is being conducted on a "best efforts" agency basis co-led by Research Capital Corporation, as sole bookrunner, and Canaccord Genuity (TSX:CF, LSE:CF) Corp. as co-lead agents.
READ: Canada Silver Cobalt announces $3M marketed public offering of units and flow-through units
As previously announced, each unit will consist of one share and one share purchase warrant. Each warrant will entitle the holder to purchase one additional share at an exercise price of $0.25 for a period of 24 months after the offering closes.
The agents will have an over-allotment option to increase the size of the offering by up to an additional 15% in units, flow through units and/or the components, to cover over-allotments and for market stabilization purposes.
Canada Silver Cobalt said it will use the net proceeds from the offering for continued exploration activities, and for working capital and general corporate purposes.
“The company will use the proceeds from the issue and sale of the flow through units to incur Canadian Exploration Expenses on the company’s Castle property,” it added.
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.
The closing of the offering is expected to take place on or about October 25, 2021.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive