Canada Silver Cobalt Works Inc has announced an agreement with Research Capital Corporation, acting as sole bookrunner and together with Canaccord Genuity (TSX:CF, LSE:CF) Corp as co-lead agents, to raise gross proceeds of up to C$2 million in a marketed private placement offering of flow-through common shares.
Proceeds from the offering will be used for Canadian exploration expenses and “flow-through mining expenditures” on the company’s Castle and Graal properties, which will be incurred on or before December 31, 2022.
Canada Silver Cobalt Works said the private placement will consist of a combination of flow-through company common shares, issued at a price of $0.23 per share, and Quebec flow-through common shares, issued at a price of $0.24 per share.
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The company noted that the agents will have an option to offer for sale up to an additional 15% of the number of flow-through and/or Quebec flow-through shares sold in the offering at the offering price, which agents’ option is exercisable, in whole or in part, at any time up to 48 hours before the closing of the offering.
In connection with the offering, the agents will receive a total fee equal to 7.0% of the gross proceeds from the offering, including in respect of any exercise of the agents’ option.
As well, Canada Silver Cobalt Works said it will grant the agents, on date of closing, non-transferable compensation warrants equal to 7.0% of the total number of flow-through and/or Quebec flow-through shares sold under the offering (including in respect of any exercise of the agents’ option). Each compensation warrant will entitle the holder to purchase one common share of the company at an exercise price equal to $0.24 for a period of 24 months following the closing.
The offering is scheduled to close on or about the week of December 20, 2021, or such earlier or later date as agreed upon between the company and the agents and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
All flow-through common shares issued under the offering will have a hold period of four months and one day from closing.
Canada Silver Cobalt’s flagship Castle property is 15 kilometres (km) east of Aris Gold Corp’s Juby gold deposit, 30 km due south of Alamos Gold’s Young-Davidson mine, 75 km southwest of Kirkland Lake Gold’s Macassa Complex, and 100 km southeast of new gold discoveries in the Timmins West area.
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