Receives $4.5
Million from Warrant Exercises
TORONTO, Jan. 26, 2021 /CNW/ - First Cobalt Corp. (TSXV:
FCC) (OTCQX: FTSSF) (the "Company") is pleased to announce that it
has commenced certain pre-construction activities, including
advancing engineering and tendering associated with long lead order
procurement.
Highlights
- $16 million in working capital,
including $4.5 million in early
warrant exercises and $9 million in
net proceeds from the financing completed January 22
- In addition to the working capital position, the Company
announced a $10 million investment by
the Government of Canada and the
Government of Ontario towards the
refinery capital costs and an additional $4
million in immediate consideration will be received upon
closing of a silver transaction announced in December 2020
- First Cobalt is commencing detailed engineering and procurement
for long lead order equipment, notably the cobalt crystallizer as
well as solvent extraction and filtering equipment
- Pilot plant testwork is ongoing to assess further improvements
to the refinery flowsheet. Cobalt solvent extraction is scheduled
to commence at the beginning of February and is expected to be
completed by February 20
- The Company is negotiating an engineering, procurement,
construction and management (EPCM) contract with Ausenco
Engineering Canada Inc.
Trent Mell, President & Chief
Executive Officer, commented:
"The commencement of pre-construction activities brings us
one step closer to our vision of producing the world's most
sustainable cobalt. Our strong treasury allows us to build a
project team and commence procurement and detailed engineering
while we complete a debt financing process. 2021 is all about
execution."
First Cobalt has begun to assemble an owner's team for project
execution to advance the refinery project while discussions for the
debt component of the capital project continue to advance. Detailed
engineering and procurement for long lead order equipment will
allow the Company to remain on track with its project schedule.
First Cobalt's treasury continues to strengthen, with recent
share price performance resulting in over $4.5 million in early warrant exercises. Certain
officers and directors of the company voluntarily exercised
warrants to bolster the Company's cash position. The Company's
working capital stands at approximately $16
million with an additional $14
million expected to come from the government contributions
to the project capital costs and the closing of a previously
announced transaction with Kuya
Silver.
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
the Iron Creek cobalt project in Idaho,
USA and controls significant silver and cobalt 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 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.
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.