Canada Silver Cobalt Works Inc has announced that, due to strong investor demand, it has agreed with Research Capital Corporation, as sole bookrunner, and together with Canaccord Genuity (TSX:CF, LSE:CF) Corp as co-lead agents to increase the size of its previously announced best efforts private placement offering for gross proceeds of up to $3 million, from up to $2million previously.
The agents will also have an option to offer for sale up to an additional 15% of the number of federal flow-through common shares and/or Québec flow-through common shares sold in the offering at the offering price, which is exercisable, in whole or in part, at any time up to 48 hours prior to the closing of the offering.
Canada Silver Cobalt Works 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.
READ: Canada Silver Cobalt Works to raise up to C$2M in a marketed private placement of flow-through shares
This discovery has the highest silver resource grade in the world, with recent drill intercepts of up to 89,853 grams/tonne silver (2,621 oz/ton Ag). A drill program is underway to expand the size of the deposit with an update to the resource estimate scheduled for Q1 2022.
In May 2020, based on a small initial drill program, the company published the region’s first 43-101 resource estimate that contained a total of 7.56 million ounces of silver in Inferred resources, comprising very high-grade silver (8,582 grams per tonne un-cut or 250.2 oz/ton) in 27,400 tonnes of material from two sections (1A and 1B) of the Castle East Robinson Zone, beginning at a vertical depth of approximately 400 meters.
Canada Silver Cobalt’s flagship silver-cobalt Castle mine and 78 square kilometre Castle Property feature strong exploration upside for silver, cobalt, nickel, gold, and copper. With underground access at the fully 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 proprietary hydrometallurgical process known as Re-2Ox (for the creation of technical-grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations), Canada Silver Cobalt is strategically positioned to become a Canadian leader in the silver-cobalt space.
The securities being offered in the private placement have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of US persons absent registration or an applicable exemption from US registration requirements and applicable US state securities laws.
Contact the author at jon.hopkins@proactiveinvestors.com