Canada Silver Cobalt Repurchases Back-in Option From Granada Gold Mine
Canada Silver Cobalt Repurchases Back-in
Option From Granada Gold Mine
COQUITLAM, BC
,
July 2, 2020
/CNW/ - Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTC:
CCWOF) (
Frankfurt
: 4T9B) ("Canada Silver Cobalt") has entered into a Purchase and Sale
Agreement with Granada Gold Mine Inc. (TSXV: GGM) ("Granada Gold") pursuant to which Canada
Silver Cobalt will repurchase from Granada Gold a back-in option on five mining leases at Castle
East, forming part of the Castle mine property near
Gowganda, Ontario
.
In payment, Canada Silver Cobalt will issue 2,941,000 common shares to Granada Gold at a
deemed price of
$0.51
per share, for total deemed consideration of approximately
$1,500,000
.
Each of the shares will be accompanied by one common share purchase warrant. Each warrant will
entitle GGM to acquire one additional common share of Canada Silver Cobalt for
$0.55
for a period
of five years.
This Purchase and Sale Agreement was completed in order to accelerate development of the Castle
mine property (refer to
June 30, 2020
, CCW news release). In 2017 Canada Silver Cobalt acquired
Granada Gold's 50% interest in the five mining leases to hold a 100% interest in the property which
now encompasses 78 sq. km. Canada Silver Cobalt acquired the 50% interest in the five mining
leases in lieu of a
$500,000
debt which Granada Gold owed to it. As part of the 2017 transaction,
Granada Gold retained a back-in option to repurchase the 50% interest in the five mining leases for
$500,000
.
Closing of the transaction is expected to take place within the coming days. The shares and
warrants issued by Canada Silver Cobalt at closing will be subject to a four-month hold period under
applicable securities regulations and the policies of the TSX Venture Exchange.
About Canada Silver Cobalt Works Inc.
Canada Silver Cobalt's flagship Castle mine and 78 sq. km Castle Property features strong
exploration upside for silver, cobalt, nickel, gold and copper in the prolific past producing
Gowganda
high-grade Silver-Cobalt District of
Northern Ontario
. With an important new discovery at Castle
East, underground access at the Castle mine, a processing facility (TTL Laboratories) in the nearby
town of Cobalt, a proprietary hydrometallurgical process known as Re-2OX, and the Beaver and
Violet properties, CCW is strategically positioned to become a Canadian leader in the silver-cobalt
space.
"Frank J. Basa"
Frank J. Basa
, P. Eng.
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 Silver Cobalt Works Inc.
View original content:
http://www.newswire.ca/en/releases/archive/July2020/02/c1285.html
%SEDAR: 00022378E
For further information:
Frank J. Basa, P.Eng., CEO, 1-416-625-2342; Marc Bamber, Director,
[email protected], +44-7725-960939
CO: Canada Silver Cobalt Works Inc.
CNW 16:30e 02-JUL-20