Canada Silver closes $3.42-million private placement

Dec 21, 2021

2021-12-21 12:27 ET – News Release

Mr. Frank Basa reports

CANADA SILVER COBALT ANNOUNCES THE CLOSING OF $3.4 MILLION PRIVATE PLACEMENT OF FLOW-THROUGH SHARES

Canada Silver Cobalt Works Inc. has completed its previously announced marketed private placement offering by raising total gross proceeds of approximately $3.42-million, including the partial exercise of the option to increase the size of the offering, consisting of: (i) 5,904,578 flow-through common shares of the company that will qualify as flow-through shares within the meaning of Subsection 66(15) of the Income Tax Act (Canada) at a price of 23 cents per FT share; and (ii) 8,595,883 Quebec flow-through common shares of the company that will qualify as flow-through shares within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and Section 359.1 of the Taxation Act (Quebec) at a price of 24 cents per Quebec FT share.

The offering was conducted on a best efforts agency basis and was co-led by Research Capital Corp., as sole bookrunner, and Canaccord Genuity Corp.

The proceeds from the issue and sale of the federal FT shares and Quebec FT shares will be used to incur Canadian exploration expenses and flow-through mining expenditures, as defined under Subsection 127(9) of the Income Tax Act (Canada) and under Section 359.1 of the Taxation Act (Quebec), on the company’s Castle property and Graal property, which will be incurred on or before Dec. 31, 2022, and renounced with an effective date of no later than Dec. 31, 2021, to the initial purchasers of federal FT shares and Quebec FT shares in an aggregate amount not less than the gross proceeds raised from the offering of federal FT shares and Quebec FT shares.

In connection with the offering, the company paid to the agents a cash commission of $144,974, representing 7 per cent (reduced to 3.5 per cent for certain subscribers on the president’s list) of the gross proceeds from the offering, and issued compensation warrants to the agents entitling them to purchase an aggregate of 616,842 common shares in the capital of the company at an exercise price of 24 cents for a period of two years from the closing of the offering. In addition, the company paid to GloRes Securities Inc. a cash finder’s fee of $87,500 and 367,753 finders’ warrants on the same terms as the agents’ compensation warrants for introducing subscribers to the company.

About Canada Silver Cobalt Works Inc.

Canada Silver Cobalt Works recently discovered a major high-grade-silver vein system at Castle East, located 1.5 kilometres from its 100-per-cent-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 per tonne silver (2,621 ounces per ton Ag). A drill program is under way to expand the size of the deposit, with an update to the resource estimate scheduled for the first quarter of 2022.

In May, 2020, based on a small initial drill program, the company published the region’s first National Instrument 43-101 resource estimate, which contained a total of 7.56 million ounces of silver in inferred resources comprising very-high-grade silver (8,582 grams per tonne uncut (250.2 ounces per ton)) in 27,400 tonnes of material from two sections (1A and 1B) of the Robinson zone beginning at a vertical depth of approximately 400 metres. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Please refer to Canada Silver Cobalt Works’ press release dated May 28, 2020, for the resource estimate.

Canada Silver Cobalt’s flagship Castle mine and 78-square-kilometre Castle property feature strong exploration upside for silver, cobalt, nickel, gold and copper in the prolific, past-producing, high-grade Gowganda silver district of Northern Ontario. With underground access at Castle, 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 formulations, Canada Silver Cobalt is strategically positioned to become a Canadian leader in the silver-cobalt space.

We seek Safe Harbor.

https://canadasilvercobaltworks.com/