eCobalt Solutions Inc. (TSX:ECS) has obtained a receipt for the final short-form base shelf prospectus from the British Columbia Securities Commission (and all other provincial commissions in Canada where the company is a reporting issuer) on Jan. 12, 2017 (see company news release dated Oct. 16, 2016).
The Shelf Prospectus, subject to securities regulatory requirements, will allow the Company to make offerings of up to $100,000,000 of common shares, preference shares, debt securities, warrants, subscription receipts, units, or any combination of such securities (all of the foregoing, collectively, the “Securities”) during the 25-month period that the Shelf Prospectus is effective.
The Securities may be offered separately or together, in amounts, at prices and on terms to be determined based on market conditions at the time of sale and set forth in an accompanying shelf prospectus supplement (“Prospectus Supplement”) and, subject to applicable regulations, may include ‘at-the-market’ transactions, private placements, public offerings or strategic investments. Unless otherwise specified in a Prospectus Supplement, the net proceeds from the sale of Securities for cash will be used for the development of the Idaho Cobalt Project (ICP) for commercial production and general corporate purposes including working capital, funding ongoing operations and/or capital requirements, reducing the level of indebtedness outstanding from time to time, discretionary capital programs, exploration and development of additional properties or interests (direct or indirect) therein, and potential future acquisitions. Each Prospectus Supplement will contain specific information, if any, concerning the use of proceeds from that sale of Securities.
The Company commissioned a NI 43-101 compliant feasibility study (the “Feasibility Study”) on the ICP in June 2016. As the Feasibility Study progresses to completion and subject to final results, the Shelf Prospectus is expected to provide efficiency, flexibility, and opportunities to finance the ICP to complete development and advance the project into commercial production.
“The 25 month life of the Shelf Prospectus will allow the Company to take advantage of opportunities as they arise, giving management the ability to act quickly on all aspects of business development over the course of a significant period of time. As we move the ICP through Feasibility Study and ultimately into production, the flexibility provided by the Shelf Prospectus will provide the Company access to the capital required to increase value for all our shareholders”, commented Paul Farquharson, President & CEO of eCobalt.
Feasibility Study Update:
On September 22, 2016 the Company commissioned a 2,600 foot metallurgical large diameter drill core program. This program was successful in providing several hundred kilograms of mineralized core samples. The samples will be used in metallurgical test work designed to provide additional confirmation data on concentrate recoveries, hydrometallurgical processing and cobalt sulfate heptahydrate crystal production. The results are expected to compliment the results from the metallurgical program completed in March 2016. The final products produced from the metallurgical testing will provide potential offtakers and other finance partners with end product samples to be used for their due diligence and evaluation.
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