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.