Canada Silver Cobalt Works Inc (TSX-V:CCW, OTCQB:CCWOF) has said it is amending the terms of 3,798,800 outstanding common share purchase warrants issued under a private placement that closed on November 25, 2020.
The exercise price will be amended to $0.1125 per share from $0.80 previously while the expiry date will be extended by two years to November 27, 2024, it said.
The warrants will be subject to an accelerated expiry provision, the company said. If the company’s share price exceeds $0.14, representing the amended warrant exercise price of $0.1125 plus 25%, for any ten consecutive trading days during the time the warrants remain unexpired, the exercise period of the warrants will be reduced to 30 days, starting seven days after the last premium trading day. The company said it will announce any accelerated expiry date by press release. All other terms of the warrants remain unchanged.
READ: Canada Silver Cobalt Works hails latest assays from Castle East drill program
The company said it has obtained consent from all warrant holders to amend the warrants, with the amendment subject to TSX Venture Exchange approval.
Additionally, Canada Silver Cobalt Works said if the amendment gets approval it will institute an incentive program designed to encourage the early exercise of the warrants.
Under the incentive program, the company said it will offer an inducement to each holder that exercises their warrants during a period of 30 days from receipt of the warrant amendment approval, by the issuance of one additional common share purchase warrant for each warrant exercised during the 30-day period.
Each incentive warrant will entitle the holder to purchase one additional common share of the company at a price of $0.15 for a period of one year from the date of warrant amendment approval, it added.
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. It has completed a 60,000 metres drill program aimed at expanding the size of the deposit with an update to the resource estimate underway.
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