Coquitlam, BC, - TheNewswire - October 4th, 2022 - Canada Silver Cobalt Works Inc. (TSXV:CCW) (OTC:CCWOF) (Frankfurt: 4T9B) (the "Company" or "Canada Silver Cobalt") announces that it intends to distribute an aggregate of approximately 11.75 million shares of its subsidiary Coniagas Battery Metals Inc. ("Coniagas") to the shareholders of Canada Silver Cobalt by way of dividend. Each of the shares will be accompanied by half of a common share purchase warrant. Each full warrant will give the holder the right to acquire one additional share of Coniagas at a price of $0.40 for two years. Canada Silver Cobalt will acquire the shares as consideration for the impending transfer to Coniagas of the Graal property in the Saguenay-Lac-St-Jean region of Québec. The Company has filed a technical report with respect to the Graal property on SEDAR, prepared in conformity with National Instrument 43-101, Standards of Disclosure for Mineral Projects.
There are currently 202,998,316 common shares of Canada Silver Cobalt issued and outstanding. The proposed dividend distribution of approximately 11.75 million shares of Coniagas will be made on the basis of one Coniagas share and half-warrant for every 17.27 shares of Canada Silver Cobalt on a date to be selected as the dividend record date. The final ratio for the dividend distribution may change as a result of changes to the number of issued and outstanding common shares of the Company between the date of this news release and the dividend record date. Coniagas intends to apply for listing on a Canadian stock exchange and to file a non-offering prospectus with the Canadian provincial securities commissions to qualify the distribution of the Coniagas shares and warrants to the shareholders of the Company.
Coniagas also intends to raise approximately $1,250,000 by way of private placement to "accredited investors" and others by issuing up to 5,000,000 shares at a price of $0.25 per share. Each share will be accompanied by one warrant, which may be exercised for two years at a price of $0.40 per share. Coniagas intends to use the proceeds from the proposed private placement for exploration on the Graal property and for working capital.
It is expected that after the proposed dividend distribution and private placement, Canada Silver Cobalt will hold approximately 36.7% of Coniagas' outstanding shares plus warrants as will the shareholders of Canada Silver Cobalt in the aggregate. Investors in the proposed private placement will hold an aggregate of approximately 15.6% of Coniagas' outstanding shares plus warrants, with the balance of approximately 11% of the Coniagas shares to be held by its directors and officers and by a third-party vendor of certain of the claims comprising the Graal property.
The Company will provide updates on the proposed distribution of the Coniagas shares and warrants to the shareholders of the Company, including the dividend record date and dividend ratio, and on the proposed listing of Coniagas on a Canadian stock exchange. The proposed distribution by the Company of the Coniagas shares and warrants and the private placement by Coniagas are subject to regulatory approval, including that of the TSX Venture Exchange.
Frank J. Basa, P.Eng., CEO of Canada Silver Cobalt, who is to become Coniagas founding CEO and President, stated, "Coniagas will establish itself as a provider of MAAS (Metal as a Service) to the global EV battery market. Early exploration of the spinout Graal property, at 6,100 hectares in Quebec, has already yielded significant results in nickel, copper, and cobalt over a 6-kilometer strike length. Historical drilling had previously indicated a potential target of near-surface tonnage of 30 – 60 million tonnes with a grade range of 0.60 – 0.80% nickel, 0.30 – 0.50% copper and 0.10 – 0.15% cobalt in the MHY section (see Company press release of April 4, 2022). This estimation does not take into account any potential at depth and excludes newly discovered mineralization. Please note that the quantity and grade of this potential target calculation is conceptual in nature, and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource. The potential target primary evaluation is a calculation of the length multiplied by the thickness of intersection by the density of 3.3 to 4.0 t/m3 multiplied by the depth extension of 150 to 250m based on historical drill holes.
"Coniagas is well-positioned to deliver ongoing results in the coming months at the Graal property in Quebec."
Frank J. Basa further added, "Canada Silver Cobalt will become a focused, high-grade silver and gold exploration company in the historic Cobalt camp and on the Cadillac-Larder-Lake Break where millions of ounces of silver and gold have been mined over a hundred-year time frame. The Castle Property, at 7,800 hectares, includes the Castle Silver Mine that produced 9,000,000 ounces of the 70,000,000 ounces of silver produced in the Gowganda mining district of the Cobalt camp. The Eby-Otto property, at nearly 1,200 hectares, is located next to the Macassa Gold Mine which has produced 24,000,000 million ounces of gold and is currently operated by Agnico-Eagle Mines."
The technical information in this news release was reviewed and approved by Frank J. Basa, P.Eng., a qualified person in accordance with National Instrument 43-101.
About Canada Silver Cobalt Works Inc.
Canada Silver Cobalt Works Inc. recently discovered a major high-grade silver vein system at Castle East located 1.5 km from its 100%-owned, past-producing Castle Mine near Gowganda in the prolific and world-class silver-cobalt mining district of Northern Ontario. The Company has completed a 60,000 m drill program aimed at expanding the size of the deposit with an update to the resource estimate underway.
In May 2020, based on a small initial drill program, the Company published the region's first 43-101 resource estimate that contained a total of 7.56 million ounces of silver in Inferred resources, comprising very high-grade silver (8,582 grams per tonne un-cut or 250.2 oz/ton) in 27,400 tonnes of material from two sections (1A and 1B) of the Castle East Robinson Zone, beginning at a vertical depth of approximately 400 meters. Note that mineral resources that are not mineral reserves do not have demonstrated economic viability. Please refer to Canada Silver Cobalt Works Press Release May 28, 2020, for the resource estimate. Report reference: Rachidi, M. 2020, NI 43-101 Technical Report Mineral Resource Estimate for Castle East, Robinson Zone, Ontario, Canada, with an effective date of May 28, 2020, and a signature date of July 13, 2020.
The Company also has: (1) 14 battery metals properties in Northern Quebec where it has recently completed an almost 15,000-metre drill program on the Graal property and an airborne VTEM geophysical survey at its Lowney-Lac Edouard property; and (2) the prospective nearly 1,200-hectare Eby-Otto gold property close to Agnico Eagle's high-grade Macassa Mine near Kirkland Lake, Ontario where it is exploring in 2022.
Canada Silver Cobalt's flagship silver-cobalt Castle mine within the 78 sq. km Castle Property features strong exploration upside for silver, cobalt, nickel, gold, and copper. With underground access at the fully-owned Castle Mine, an exceptional high-grade silver discovery at Castle East, a pilot plant to produce cobalt-rich gravity concentrates, a processing facility (TTL Laboratories) in the town of Cobalt, and a proprietary hydrometallurgical process known as Re-2Ox (for the creation of technical-grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations), Canada Silver Cobalt is strategically positioned to become a Canadian leader in the silver-cobalt space. More information at www.canadasilvercobaltworks.com .
"Frank J. Basa"
Frank J. Basa, P. Eng.
Chief Executive Officer
For further information, contact:
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.
Caution Regarding Forward-Looking Statements
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. This news release may contain forward-looking statements regarding Canada Silver Cobalt Works Inc. (the "Company") and Coniagas Battery Metals Inc. ("Coniagas") which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address the proposed distribution of common shares and common share purchase warrants of Coniagas to the shareholders of the Company by way of dividend, the proposed private placement by Coniagas and proposed listing of Coniagas on a Canadian stock exchange, resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward-looking. No assurance can be given that any of the foregoing will be achieved. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward-looking statements. A detailed discussion of the risk factors encountered by the Company is available in the Company's Annual Information Form dated July 19, 2021 for the fiscal year ended December 31, 2020 available under the Company's profile on SEDAR at www.sedar.com.
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