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.