Canada Cobalt Launches Pilot Plant, Closes $1.5 Million Financing
Canada Cobalt Launches Pilot Plant, Closes
$1.5 Million Financing
COQUITLAM, BC
,
July 25, 2018
/CNW/ - Canada Cobalt Works Inc. (TSX-V: CCW) (OTCPK:
TAKRF) (
Frankfurt
: 4T9B) (the "Company" or "Canada Cobalt") is pleased to provide a corporate
and exploration/development update as the Company accelerates its activities in the prolific Northern
Ontario Cobalt Camp.
Highlights:
Pilot plant assembly at the Castle mine is proceeding ahead of schedule with the jaw crusher,
cone crusher and ball mill having been wired and commissioned. Mineralized material from the
first level of the mine is now being crushed, while gravity and screen equipment is expected to
be operational in the coming days;
Underground drilling targeting high-grade cobalt continues (25 holes completed to date) and is
being extended through the balance of 2018 - a consistent flow of results will commence this
quarter;
The company has closed a private placement with strategic investors in the amount of
$1,449,054
at
65 cents
per unit (further details below) and is well-positioned and financed to
achieve key milestones in 2018.
Jacques Monette
, Canada Cobalt director and mine supervisor, commented: "Underground and pilot
plant crews are doing an exceptional job. Shaft #3 has also been opened for a pump test as part of
a study requirement related to permitting for a potential 600 tpd milling operation."
Gravity concentrates will be shipped from the Castle mine site to SGS Lakefield in
Peterborough,
Ontario
, for conversion into a
Cobalt
sulphate product through the company's proprietary Re-2OX
process. Canada Cobalt eagerly anticipates updating shareholders on Re-2OX during the first half
of August.
Private Placement Details
The Company has issued 2,229,314 units at a purchase price of
$0.65
per unit for total proceeds of
$1,449,054
. Each unit comprises one common share and one half of one share purchase warrant.
Each whole warrant will entitle the holder thereof to purchase one additional common share of the
Company at an exercise price of
$0.90
per share for a period of two years from closing, subject to
TSX Venture Exchange ("Exchange") approval.
Finder's fees were paid in connection with the private placement in the amount of
$36,629.97
in cash
and 56,354 broker warrants on the same terms as the purchaser warrants, subject to Exchange
approval.
All securities issued in connection with the private placement are subject to a four-month-and-a-day
hold period expiring
November 26, 2018
, in accordance with applicable securities laws.
Proceeds of the private placement will go toward the expanded underground drilling and cobalt
sulphate programs at the past producing Castle mine near
Gowganda, Ontario
, and for general
working capital purposes.
Qualified Person
The technical information in this news release was prepared under the supervision of
Frank J. Basa
,
P.Eng., Canada Cobalt's President and Chief Executive Officer, who is a member of Professional
Engineers Ontario and a qualified person in accordance with National Instrument 43-101.
About Canada Cobalt Works Inc.
Canada
Cobalt
is a pure play cobalt company focused exclusively on the Northern Ontario Cobalt
Camp,
Canada's
most prolific cobalt district. With three 100%-owned past producing mines, a
proprietary hydrometallurgical process known as Re-2OX, and plans for a 600-tonne-per-day mill at
its flagship Castle Property near
Gowganda, Canada
Cobalt
is strategically positioned to become a
vertically integrated North American leader in cobalt extraction and recovery.
"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.
View original content: http://www.newswire.ca/en/releases/archive/July2018/25/c3533.html
%SEDAR: 00022378E
For further information:
Frank J. Basa, P.Eng., President and CEO at 1-819-797-4144, or Wayne
Cheveldayoff, Investor Relations, [email protected], 416-710-2410
CO: Canada Cobalt Works Inc.
CNW 20:00e 25-JUL-18