Canada Silver arranges $5-million private placement

Mar 17, 2022

2022-03-17 16:58 ET – News Release

Mr. Frank Basa reports

CANADA SILVER COBALT ANNOUNCES $5 MILLION MARKETED PRIVATE PLACEMENT OF UNITS AND FLOW-THROUGH UNITS

Canada Silver Cobalt Works Inc. has entered into an agreement with Research Capital Corp. to act as sole book runner and together with Canaccord Genuity Corp. as co-lead agents, in connection with a marketed private placement offering for aggregate gross proceeds of up to $5-million in a combination of: (i) units of the company at a price of 25 cents per unit, (ii) flow-through units of the company at a price of 27 cents per FT unit, and (iii) Quebec flow-through units of the company at a price of 29 cents per QFT unit.

Each unit will consist of one common share of the company and one common share purchase warrant. Each FT unit will consist of one flow-through common share that will qualify as a flow-through share within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and one warrant. Each QFT unit will consist of one Quebec flow-through common share that will qualify as a flow-through share within the meaning of Subsection 66(15) of the Tax Act and Section 359.1 of the Taxation Act (Quebec), and one warrant. Each warrant shall entitle the holder thereof to purchase one common share at an exercise price of 32 cents per warrant share at any time up to 36 months following the closing of the offering.

The agents will have an option to offer for sale up to an additional 15 per cent of the number of units, FT units and/or QFT units sold in the offering at the offering price, which agents’ option is exercisable, in whole or in part, at any time up to 48 hours prior to the closing of the offering.

The net proceeds from the sale of units will be used for continued exploration activities, and for working capital and general corporate purposes. The gross proceeds from the issue and sale of the FT units and QFT units will be used to incur Canadian exploration expenses and flow-through mining expenditures as defined in Subsection 127(9) of the Tax Act 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 no later than Dec. 31, 2022, to the initial purchasers of FT units and QFT units in an aggregate amount not less than the gross proceeds raised from the offering of FT units and QFT units. If the qualifying expenditures are reduced by the Canada Revenue Agency, the company will indemnify each FT unit and QFT unit subscriber for any additional taxes payable by such subscriber as a result of the company’s failure to renounce the qualifying expenditures as agreed.

The offering is scheduled to close on or about the week of April 13, 2022, or such earlier or later date as agreed upon between the company and the agents and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The FT unit and QFT unit to be issued under the offering will have a hold period of four months and one day from closing.

In connection with the offering, the agents will receive an aggregate fee equal to 7 per cent of the gross proceeds from the offering (including in respect of any exercise of the agents’ option), subject to a reduction for certain orders on a president’s list. In addition, the company will grant the agents, on date of closing, non-transferable compensation warrants equal to 7 per cent of the total number of units, FT units and/or QFT units sold under the offering (including in respect of any exercise of the agents’ option), subject to a reduction for certain orders on a president’s list. Each compensation warrant will entitle the holder thereof to purchase one unit at an exercise price equal to 25 cents for a period of 36 months following the closing.

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 km 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/tonne silver (2,621 oz/ton Ag). A drill program is under way 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 uncut 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 metres.

The company also has 14 battery metals properties in Northern Quebec where it is currently drilling and the prospective 1,000-hectare Eby-Otto gold property close to Agnico Eagle’s high-grade Macassa mine near Kirkland Lake, Ont., where it will be exploring in 2022.

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 formulations), Canada Silver Cobalt is strategically positioned to become a Canadian leader in the silver-cobalt space.

We seek Safe Harbor.

https://canadasilvercobaltworks.com/