CBLT Announces Flowthrough Financing and Exploration Plans
CBLT Announces Flowthrough Financing and
Exploration Plans
Burlington, Ontario--(Newsfile Corp. - February 16, 2021) -
CBLT Inc. (TSXV: CBLT) ("CBLT") has set
its exploration goals and budget for the foreseeable future. To fund that budget CBLT announces its
intention to effect a non-brokered flowthrough financing in an amount no less than $100,000 (one
hundred thousand dollars, resulting in the issuance of one million Flowthrough Units) up to $400,000 (four
hundred thousand dollars, resulting in the issuance of four million Flowthrough Units). Each Flowthrough
Unit will be priced at $0.10 (ten cents) per Flowthrough Unit and will comprise of one flowthrough share
and one full 15-cent warrant with a 24-month term, with each 15-cent warrant being exercisable into a
flowthrough common share.
Customary prospectus exemptions will be relied upon, including the "Accredited Investor" exemption and
the "Distributions to Existing Security Holders" exemption pursuant to section 2.9 of Ontario Securities
Commission
Rule 45-501
. Under that section 2.9 each person who as of the end of business on the
Record Date holds any CBLT common shares is permitted to purchase from CBLT's treasury up to
$15,000 of the Flowthrough Units. Management believes this to be a very democratic means of effecting
this financing. The Record Date is set for Thursday, February 18, 2021.
Referral fees may be paid to arm's length persons in connection with the issuance of the Flowthrough
Units. Other than the subscription agreement, there will be no further offering material provided to
Existing Security Holders or others related to the issuance of the Flowthrough Units.
CBLT's exploration plans begin with advancing the Shatford Lake property which management believes
to be highly prospective for lithium. CBLT expects to close on Shatford Lake property in the near future.
Other assets in CBLT's broad portfolio will also be advanced, with at least one drill program
contemplated for the summer/fall of 2021. The board is still to decide whether that program will be at Big
Duck Lake (gold in Hemlo) or Chilton Cobalt (cobalt, nickel, copper, chromium, in Quebec).
Shatford Lake
Shatford Lake is located in the Winnipeg River-Cat Lake pegmatite field in eastern Manitoba near the
Ontario border, roughly 130 kilometres from Winnipeg and only five kilometres southwest of the Tanco
Mine. The area has been previously explored for rare element pegmatites with historical mapping and
drilling at Shatford Lake identifying multiple pegmatite dykes. Most of this work focussed on the tantalum
potential of the dykes and lithium was not analysed for. However, spodumene was noted in an
assessment report and provincial geologists documented the presence of lithian mica.
Other minerals identified in historical work include beryl and tantalite, indicating the Shatford Lake
pegmatites are likely LCT-type (lithium-cesium-tantalum). The pegmatites are intruded into
metasediments and metavolcanics. Sulphide mineralisation has been noted in these host rocks.
Limited drilling was carried out on the west side of Shatford Lake in 1968 by a third party. The field notes
from that program carry a notation of "Reddish medium grained pegmatite". The best intercept for
pegmatite was a 19.8 metre section in hole SL-5. The core was not tested for lithium. CBLT did not carry
out this work, cannot attest to the means applied to carry it out, and does not know whether it was carried
out under the supervision of a Qualifying Person as that term is used in
NI 43-101
. Readers are
cautioned not to rely upon it. CBLT intends to eventually carry out its own drill program at Shatford Lake
to provide fresh data.
The pegmatites on the south shore of Shatford Lake appear to have never been drill-tested.
Jessica Daniel, P.Geo., a CBLT director and the past Exploration Manager at Rock Tech Lithium Inc.,
will oversee the Shatford Lake programs. Ms. Daniel has been involved in the mineral exploration
industry for over 18 years. She has prior experience managing exploration programs and evaluating
projects, with exposure to various deposit types including rare element pegmatites, orogenic gold,
porphyry, epithermal, VMS, and the Sudbury Basin. She is a member of APEGBC, has a B.Sc. in
Geological Sciences from the University of British Columbia and holds an M.Sc. in Geology from
Laurentian University. She has reviewed the contents of this press release.
CBLT has over $200,000 cash in its treasury and owns over 1,800,000 shares of Ready Set Gold Corp.
("RDY") which trades on the Canadian Securities Exchange. CBLT has received its first escrow release
of RDY shares, with three remaining escrow releases to take place on or about April 18, June 18 and
August 18, all in 2021. CBLT intends to use the proceeds of the ultimate sale of some of the RDY shares
to fund
non-exploration expenses. For the time being, CBLT does not intend to immediately sell its RDY
shares although this intention could change without notice at any time.
Further, roughly 21,000,000 CBLT warrants will expire on March 12, 2021. These relate to CBLT's
acquisition of a portfolio of assets in 2019. Such warrants have an exercise price of eight cents ($0.08).
Some of these warrants have already been exercised and CBLT expects further warrant holders to
exercise as well. Between the exercise of these warrants, the proceeds of sale from the RDY shares and
cash on hand, CBLT does not believe it will require a hard dollar financing for the foreseeable future.
Outlook for 2021
CBLT believes a strong commodity supercycle is beginning, and the main benefactors will be the metals
that support the Green Revolution. Cobalt has seen roughly a 50% increase on the London Metal
Exchange so far in 2021, lithium continues to make strong advances, and copper has been holding onto
its 2020 gains. The federal funding of First Cobalt Corp.'s cobalt processing facility in the town of Cobalt,
Ontario is encouraging for further cobalt exploration.
In addition to the exploration plans referred to above, 2021 CBLT intends to:
continue to review other acquisition opportunities;
explore profitable divestiture activities, and in this regard CBLT advises it has received serous
inquiries into the availability of some of its portfolio assets; and,
as instructed by the shareholders at the Annual and Special Shareholder Meeting held August 31,
2020, to consider the diversification of CBLT's growth plan into other business areas.
CONTACT INFORMATION
Peter M. Clausi
CEO and Director
1 416 890 1232
@ClausiPeter
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
This news release contains certain statements that constitute forward-looking statements as they relate
to CBLT and its management. Forward-looking statements are not historical facts but represent
management's current expectation of future events, and can be identified by words such as "believe",
"expects", "will", "intends", "plans", "projects", "anticipates", "estimates", "should", "continues" and
similar expressions. Although management believes that the expectations represented in such forward-
looking statements are reasonable, there can be no assurance that they will prove to be correct or will
come to pass.
By their nature, forward-looking statements include assumptions and are subject to inherent risks and
uncertainties that could cause actual future results, conditions, actions or events to differ materially from
those in the forward-looking statements. If and when forward-looking statements are set out in this new
release, CBLT will also set out the material risk factors or assumptions used to develop the forward-
looking statements. Except as expressly required by applicable securities laws, CBLT assumes no
obligation to update or revise any forward-looking statements. The future outcomes that relate to
forward-looking statements may be influenced by many factors, including but not limited to; SARS-CoV-
2; reliance on key personnel; shareholder and regulatory approvals; First Nations and other local
communities; jurisdictional risk; risks of future legal proceedings; income tax matters; availability and
terms of financing; distribution of securities; commodities pricing; environmental issues; effect of market
interest on price of securities; and, potential dilution.
CBLT's operations could be significantly adversely affected by the effects of a widespread global
outbreak of a contagious disease, including the recent outbreak of illness caused by COVID-19. It is not
possible to accurately predict the impact COVID-19 will have on operations and the ability of others to
meet their obligations, including uncertainties relating to the ultimate geographic spread of the virus, the
severity of the disease, the duration of the outbreak, and the length of travel and quarantine restrictions
imposed by governments of affected countries. In addition, a significant outbreak of contagious
diseases in the human population could result in a widespread health crisis that could adversely affect
the economies and financial markets of many countries, resulting in an economic downturn that could
further affect operations and the ability to finance its operations.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/74504