COQUITLAM, BC, June 15, 2020 /CNW/ - Canada Silver Cobalt
Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the "Company" or "Canada
Silver Cobalt") is pleased to announce the Company has closed a
flow-through private placement with strategic investors, raising
gross proceeds of $1.2 million by
issuing 2,000,000 units at $0.60 per
flow-through unit (see details below).
Proceeds of the flow-through private placement will be used to
further ramp up drilling and exploration over the coming weeks at
the Company's 100%-owned Castle East high-grade silver discovery in
Northern Ontario's Gowganda
Camp.
Wedge Holes Take Aim At Rich Second "Trunk" Potential
After extending the original Robinson Zone high-grade discovery
vein 47 meters up-dip through drill hole CS-20-24 from surface,
geologists are now resuming a wedge hole strategy that proved to be
very effective last winter when the extremely rich Robinson Zone
was first delineated, leading to a maiden Inferred resource
estimate (refer to May 28, 2020 news
release).
Starting today, an initial two wedge holes, drilled up-dip from
different directions based on the orientation of the vein, are
targeting the extension of the high-grade vein discovered 95 meters
below the Robinson Zone in drill hole CS-20-22 that was not
included in the resource estimate (8,339 g/t Ag or 243
oz/ton over 0.35m within
0.60m of 4,971 g/t Ag or
145 oz/ton, estimated at 50% to 70% true width). This vein,
featuring native dendritic silver (large "rosettes"), has a
different texture to it than the vein in the original discovery,
suggesting the Castle East mineralizing event was driven by
multiple phases.
Matt Halliday, VP Exploration,
commented: "It appears we have found the first two 'trunks' of this
system. Based on district geology we expect to find branches off
these trunks and a possible connection between these trunks through
a network of veins.
"We have a very large area that has never been systematically
drill tested, so the scale potential is very significant. We know
we have the grade with 7.6 million Inferred ounces at 250
oz/ton in a very concentrated area, ideal for accessing through
a ramp," Halliday concluded.
Flow-Through Private Placement Details
Each FT Unit comprises one flow-through common share of the
Company 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 $0.70 per share, for a period of two years from
closing, subject to TSX Venture Exchange ("Exchange") approval.
Canada Silver Cobalt has paid finder fees in the amount of
$94,000 and issued 156,665 finder
warrants in connection with the FT private placement. The finder's
warrants are on the same terms as the financing warrants. The
finder fees are subject to Exchange approval.
All securities issued in connection with the private placement
will be subject to a four–month and a day hold period expiring on
October 16, 2020, in accordance with
applicable Canadian securities laws.
Qualified Person
The technical information in this news release was prepared
under the supervision of Mr. Merouane
Rachidi, Ph.D., P.Geo., (APGO, APEGNB and OGQ) of GoldMinds
Geoservices, a qualified person in accordance with NI 43-101.
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.
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 Silver Cobalt Works Inc.