Canada Silver Cobalt Works Inc. (TSX-V:CCW) has said it is arranging a fully subscribed non-brokered private placement by issuing 13,681,819 Quebec flow-through units (QFT units) at a price of 11 cents each, raising gross proceeds of $1.5 million.
In addition, the company is raising $300,000 via the issue of 3 million flow-through (FT) units at 10 cents apiece.
The proceeds of the FT private placement will be used for continuing drilling of its Eby-Otto property located near Kirkland Lake, Ontario, while the funds raised from the QFT private placement will be used for the Lowney-Lac Edouard property in Central Quebec, Canada Silver Cobalt said in a statement.
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Each QFT and FT unit comprises one flow-through common share of the company and one-half of one share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the company at an exercise price of 15 cents per share, for a period of two years from closing, subject to TSX Venture Exchange approval.
The company noted that finders' fees in the amount of $144,350 cash and 1,339,046 warrants will be paid in connection with the financing. The finders' warrants are at an exercise price of 11 cents per share, for a period of two years from closing. The finders' fees paid in connection with the private placement are subject to exchange approval.
All securities issued in connection with the private placement will be subject to a four-month-and-a-day hold period in accordance with applicable Canadian securities laws.
Canada Silver Cobalt 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. The company has completed a 60,000-metre drill program aimed at expanding the size of the deposit with an update to the resource estimate underway.
Its 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, 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.
Contact the author at jon.hopkins@proactiveinvestors.com