TORONTO, Feb. 10, 2020 /CNW/ - Cobalt Blockchain Inc.
("COBC" or the "Company") (TSX-V: COBC; OTCQB: COBCF) announces
that it is working towards completing the previously announced
private placement offering (the "Offering") through the issuance of
units ("Units") at a price of $0.05
per Unit raising gross proceeds of $1,000,000, subject only to final approval of the
TSX Venture Exchange. The placement is unbrokered.
Each Unit to be issued pursuant to the Offering will consist of
one common share in the capital of the Company (a "Common Share")
and one Common Share purchase warrant (a "Warrant"). Each Warrant
will entitle the holder thereof to purchase one additional Common
Share at a price of $0.20 for a
period of two years from the date of its issuance.
The Company intends to use the net proceeds of the Offering to
fund i) commissioning of the hydroxide plant in Democratic Republic of Congo and ii) for
working capital and general corporate purposes.
The securities to be issued in connection with the Offering are
subject to a statutory four-month hold period from the date of
issuance i.e. the hold periods expire four months and one day from
their respective dates of issuance.
The Company is also pleased to announce that it is now
proceeding with an additional private placement offering (the "New
Offering") through the issuance of an additional 50,000,000 Units
at a price of $0.05 per Unit for a
gross proceeds of up to $2,500,000.
Each Unit to be issued pursuant to the New Offering consists of
one Common Share and one Common Share purchase warrant. Each
Warrant will entitle the holder thereof to purchase one additional
Common Share at a price of $0.20 for
a period of two years from the date of its issuance. The New
Offering will be brokered.
The Company intends to use the net proceeds of the New Offering
to fund i) exploration work on its joint venture properties, ii)
commission of the hydroxide plant in Democratic Republic of Congo and securing
adequate feed material for the plant, and iii) for working capital
and general corporate purposes.
The securities to be issued in connection with the New Offering
are subject to a statutory four-month hold period for the
respective dates of issuance i.e. the hold periods expire four
months and one day from their respective dates of issuance.
This press release does not constitute an offer to sell or
solicitation of an offer to sell any of the securities. The
securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any state securities laws.
About Cobalt Blockchain Inc.
Cobalt Blockchain Inc. (TSXV:COBC) is a Canadian resource
company expanding its exploration and development business to
include cobalt assets in the Democratic
Republic of the Congo ("DRC"); it holds export trading
licenses for 3T, copper and cobalt from the DRC. COBC is the first
mining and mineral trade company set up specifically to procure
cobalt in compliance with the Organisation for Economic
Co-operation and Development ("OECD") due diligence framework. COBC
has developed and is implementing a blockchain-based reporting
platform to provide greater certainty of provenance and further
assurance that all minerals procured are ethically-sourced. Senior
management have over twelve years of experience working in the DRC
and a proven international track record in exploration success and
the trading of certified conflict-free, child-labour-free
minerals.
Forward-Looking Information
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address future
production, reserve potential, exploration drilling, exploitation
activities and events or developments that the Company expects are
forward-looking statements. Although the Company believes the
expectations expressed in such statements are based on reasonable
assumptions, such statements are not guarantees of future
performance and actual results or developments may differ
materially from those in the statements. There are certain factors
that could cause actual results to differ materially from those in
forward-looking statements. These include market prices,
exploitation and exploration successes, continued availability of
capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are
not guarantees of future performance and actual results or
developments may differ materially from those projected in the
forward-looking statements. For more information on the Company,
investors should review registered filings at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Cobalt Blockchain Inc.