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.
- - 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.
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.