TORONTO, Aug. 11, 2020 /CNW/ - First Cobalt Corp.
(TSX-V: FCC; OTCQX: FTSSF) (the "Company") is pleased to announce a
$2 million non-brokered private
placement consisting of (i) an aggregate of 6,250,000 units of the
Company ("Flow-Through Units") at a price of $0.16 per Flow-Through Unit for gross proceeds of
$1 million (the "FT Offering") and
(ii) an aggregate of 7,142,857 units (the "Units") of the Company
at a price of $0.14 per Unit for
gross proceeds of $1 million (the
"Offering").
Each Flow-Through Unit consists of one common share of the
Company qualifying as a 'flow-through share' (a "Flow-Through
Share") and one-half of one common share purchase warrant (each
whole common share purchase warrant a "Warrant"). Each Unit
consists of one common share of the Company (a "Common Share") and
one Warrant. Each full Warrant will entitle the holder thereof to
purchase one Common Share of the Company at a price of $0.21 per Common Share, for a period of 24 months
following the Closing Date.
All proceeds from the sale of the Flow-Through Units will be
used to incur eligible Canadian Exploration Expenses as defined in
the Income Tax Act (Canada)
related to the Company's projects in Ontario, Canada.
Red Cloud Securities Inc. is acting as a finder in connection
with a portion of the Offering, and the Company intends to pay
finders' fees in connection with this Offering. Proceeds of
the Offering will be used by the Company to fund the advancement of
First Cobalt's silver assets in Ontario and the remaining proceeds will be
used for general corporate purposes.
Closing of the Offering is expected to occur by the end of
August 2020 and is subject to receipt
of regulatory approvals, including the approval of the TSX Venture
Exchange. The securities to be issued under the Offering will have
a hold period of four months and one day from their issue. The
securities being offered will not be registered under the United
States Securities Act of 1933, as amended and may not be offered or
sold within the United States
absent registration or an exemption from the registration
requirements. This news release does not constitute an offer to
sell or a solicitation of an offer to buy any of the securities in
the United States.
About First Cobalt
First Cobalt owns North
America's only permitted cobalt refinery. Cobalt refining is
a critical component to the development and manufacturing of
batteries for electric vehicles and forms a foundational piece of
the next generation of the North American auto sector and other
electrified consumer and industrial applications. First Cobalt owns
a cobalt project in the United
States and controls significant mineral assets in the
Canadian Cobalt Camp, including more than 50 past producing
mines.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking
Statements
This news release may contain forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995,
which relate to timing for completion of the Offering and the
intended use of proceeds from the Offering. All statements, other
than statements of historical facts, are forward-looking
statements. Generally, forward-looking statements can be identified
by the use of terminology such as "plans", "expects', "estimates",
"intends", "anticipates", "believes" or variations of such words,
or statements that certain actions, events or results "may",
"could", "would", "might", "occur" or "be achieved".
Forward-looking statements involve risks, uncertainties and other
factors that could cause actual results, performance and
opportunities to differ materially from those implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements are set
forth in the management discussion and analysis and other
disclosures of risk factors for First Cobalt, filed on SEDAR at
www.sedar.com. Although First Cobalt believes that the
information and assumptions used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on
these statements, which only apply as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed times frames or at all. Except where required by
applicable law, First Cobalt disclaims any intention or obligation
to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
SOURCE First Cobalt Corp.