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.