Canada Cobalt and Polymet Enter Into Definitive Purchase Agreement COQUITLAM, B.C. ,
Canada Cobalt and Polymet Enter Into
Definitive Purchase Agreement
COQUITLAM, B.C.
,
Jan. 10, 2020
/CNW/ - Canada Cobalt Works Inc. (TSXV: CCW) (OTC:
CCWOF) (
Frankfurt
: 4T9B) (the "
Company
" or "
Canada Cobalt
") is pleased to announce that it has
closed its deal to acquire the only facility ("PolyMet Labs") in the Northern Ontario Silver-Cobalt
district that combines bullion pouring, bulk sampling, commercial assaying and e-waste processing.
The Transaction, completed at an opportune time in the precious metals cycle, provides Canada
Cobalt with multiple immediate and long-term advantages as a fully integrated leader in
Canada's
Silver-Cobalt heartland. The lab and mineral processing facility in the town of Cobalt, within just 50
meters of a rail line and just a short distance from Canada Cobalt's Castle and Beaver properties,
will also become the new home of the Company's environmentally friendly
Re-2OX
Process.
Terms of Transaction
Canada Cobalt's newly-formed wholly-owned subsidiary, Temiskaming Testing Laboratories Inc.
("TTL"), and PolyMet Resources Inc. ("PolyMet") have entered into a definitive asset purchase
agreement dated
January 8, 2020
(the "Purchase Agreement") pursuant to which TTL has agreed to
purchase substantially all of the assets of PolyMet (the "Transaction").
Under the terms of the Purchase Agreement, Canada Cobalt will issue an aggregate of 690,409
units to PolyMet at a deemed price of
$0.45
per unit for total consideration of approximately
$310,684
. Each unit comprises one common share and one common share purchase warrant.
Each warrant will entitle the holder thereof to purchase one additional common share of Canada
Cobalt at an exercise price of
$0.50
for a period of two years from closing of the Transaction. TTL
will also assume certain outstanding obligations of PolyMet in an amount of approximately
$339,316
.
The Transaction is subject to standard closing conditions, including approval by the TSX Venture
Exchange. The shares and warrants to be issued to PolyMet will be subject to restrictions on resale
for a period of four months from the closing date of the Transaction.
About Canada Cobalt Works Inc.
Canada Cobalt has 100% ownership of the Castle mine and the 78 sq. km Castle Property with
strong exploration upside in the prolific past producing
Gowganda
high-grade Silver Camp of
Northern Ontario
. With underground access at Castle, a pilot plant to produce cobalt-rich gravity
concentrates on site, and a proprietary hydrometallurgical process known as Re-2OX for the
creation of technical grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations,
Canada Cobalt is strategically positioned to become a vertically integrated North American leader in
cobalt extraction and recovery while it also exploits a powerful new silver-gold market cycle.
"Frank J. Basa"
Frank J. Basa
, P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service 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 may contain forward-looking statements including but not limited to
comments regarding the timing and content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such statements.
SOURCE
Canada Cobalt Works Inc.
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http://www.newswire.ca/en/releases/archive/January2020/10/c8506.html
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For further information:
Frank J. Basa, P.Eng., President and CEO, 1-416-625-2342; Marc
Bamber, Director, [email protected], +44-7725-960939
CO: Canada Cobalt Works Inc.
CNW 07:30e 10-JAN-20