Canada Silver Cobalt Works Inc said it had completed its previously announced private placement and raised around C$3.42 million gross, which included the partial exercise of an option to increase the offering.
The offering comprised the issue of around 5.9 million flow-through common shares that will qualify as 'flow-through shares' (Federal FT shares) at C$0.23 each, and around 8.5 million Québec flow-through shares at C$0.24 per Québec FT share.
The proceeds from the issue and sale of the Federal FT shares and Québec FT shares will be used to incur Canadian Exploration Expenses and “flow-through mining expenditures” as defined in the Tax Act on the company's Castle property and Graal property, which will be incurred on or before December 31, 2022.
READ: Canada Silver Cobalt Works increases size of previously announced offering to gross proceeds of up to $3 million due to strong investor demand
The offering was conducted on a "best efforts" agency basis and was co-led by Research Capital Corporation, as sole bookrunner, and Canaccord Genuity (TSX:CF, LSE:CF) Corp.
Canada Silver Cobalt Works recently discovered a major high-grade silver vein system at Castle East, which lies 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/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 1Q 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 around 400 meters.
Contact the author at giles@proactiveinvestors.com