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Cobalt 27 and Pala Investments Announce Completion of Arrangement

Mergers & Acquisitions

COBALT 27 AND PALA INVESTMENTS ANNOUNCE COMPLETION OF ARRANGEMENT

TORONTO, ONTARIO, October 25, 2019 — Cobalt 27 Capital Corp. (TSXV: KBLT) ( “Cobalt 27” or

the “Company”) and Pala Investments Limited (“Pala”) are pleased to announce the completion of the

previously-announced plan of arrangement under the Business Corporations Act (British Columbia)

(“Arrangement”) which provided for the acquisition by Pala of 100% of Cobalt 27’s issued and

outstanding common shares (other than the approximately 19% that Pala already owned), and the creation

of Conic Metals Corp. (“Conic”).

The Arrangement was approved by Cobalt 27’s shareholders at an annual general and special meeting held

on October 11, 2019, and by the Supreme Court of British Columbia on October 16, 2019. Under the terms

of the Arrangement, each Cobalt 27 common share held was exchanged for C$4.00 in cash and one common

share of Conic.

The TSX Venture Exchange (the “TSX -V”) has conditionally approved the listing of the Conic common

shares and it is anticipated that the Conic common shares will commence trading on the TSX -V in early

November under the symbol "NKL" upon final acceptance of Conic’s Form 2B Listing Statement and other

related deliverables. Cobalt 27 intends to promptly apply to de-list its common shares from the TSX-V and

cease to be a reporting issuer in each of the provinces and territories of Canada.

Arrangement Questions

Registered Cobalt 27 shareholders who have questions or require assistance with submitting their Cobalt

27 shares to the Arrangement may direct their questions to TSX Trust Company, who is acting as depositary

under the Arrangement by email at [email protected] or at (416) 342-1091 or toll-free at

1 (866) 600-5869. Non-registered Cobalt 27 shareholders should contact their brokers or other intermediary

with any questions or for instructions or assistance with submit ting their Cobalt 27 shares for the

Arrangement. Further information regarding the Arrangement is also available in the management

information circular of the Company dated August 13 , 2019, as supplemented on October 3, 2019, copies

of which are available under Cobalt 27’s profile on SEDAR at www.sedar.com.

About Pala

Pala is an investment company focused on the raw materials value chains that drive the global economy.

Pala’s team has extensive experience, with a strong track record of successful investment s and value

creation. Pala seeks to assist companies by providing strategic support and innovative solutions in

development, growth and turnaround situations. Pala invests across all raw materials as well as the

associated businesses critical to building sustainable value chains for the future, including extraction,

processing, recycling, logistics and technology.

Additional Information

None of the securities issued pursuant to the Arrangement have been or will be registered under the United

States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and all

of the securities issued in the Arrangem ent were issued in reliance upon the exemption from such

registration requirements provided by Section 3(a)(10) of the U.S. Securities Act and applicable exemptions

under state securities laws. This news release does not constitute an offer to sell or the solicitation of an

offer to buy any securities.

Cautionary Note Regarding Forward-Looking Statements

This news release contains certain information which constitutes ‘forward -looking statements ’ and

‘forward-looking information’ within the meaning of applicable Canadian securities laws. Any statements

that are contained in this news release that are not statements of historical fact may be deemed to be forward-

looking statements. Forward looking statements are often identified by terms such as “may”, “should”,

“anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these terms and similar

expressions. Forward-looking statements in this news release include, but are not limited to statements with

respect to: the anticipated benefits associated with the Arrangement; the consideration to be received by

shareholders of Cobalt 27, which may fluctuate in value due to Conic common shares forming part of the

consideration; the timing for trading commencement of Conic shares, and de-listing of the Cobalt 27 shares

and Cobalt 27 ceasing to be a reporting issuer. Readers are cautioned not to place undue reliance on forward-

looking statements. Forward-looking statements involve known and unknown risks and uncertainties, most

of which are beyond the Company’ s control. For more details on these and other risk factors see the

Company’s most recent Annual Information Form on file with Canadian securities regulatory authorities

on SEDAR at www.sedar.com under the heading “ Risk F actors”. Should one or more of the risks or

uncertainties underlying these forward -looking statements materialize, or should assumptions underlying

the forward-looking statements prove incorrect, actual results, performance or achievements could vary

materially from those expressed or implied by the forward-looking statements.

The forward-looking statements contained herein are made as of the date of this release and, other than as

required by applicable securities laws, the Company does not assume any obl igation to update or revise

them to reflect new events or circumstances. The forward -looking statements contained in this release are

expressly qualified by this cautionary statement.

FOR FURTHER INFORMATION PLEASE CONTACT:

For Cobalt 27:

Justin Cochrane

President & COO

+647 846 7765

Neither the 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. No securities regulatory authority has either approved or disapproved of the contents of this

news release.