Mr. Frank Basa reports
CANADA SILVER COBALT FILES THE NI 43-101 TECHNICAL REPORT ON MINERAL RESOURCE ESTIMATE FOR CASTLE EAST, ROBINSON ZONE
Canada Silver Cobalt Works Inc. has filed an independent technical report on SEDAR. The technical report was prepared in accordance with National Instrument 43-101 (Standards of Disclosure for Mineral Projects) supporting a mineral resource estimate for the Castle East, Robinson zone, Ontario, Canada, with an effective date of May 28, 2020, and a signature date of July 13, 2020.
This technical report documents the first mineral resource estimate (press release of
May 28, 2020) for the Robinson zone discovery.
The mineral resource has been estimated in conformity with CIM (Canadian Institute of Mining, Metallurgy and Petroleum) estimation of mineral resource and mineral reserves best practices guidelines and is reported in accordance with Canadian Securities Administrators' National Instrument 43-101.
The technical report can be found under the company's issuer profile on SEDAR and the company's website.
The company also announces that it has completed its previously announced repurchase from Granada Gold Mine Inc. of a back-in option on five mining leases forming part of the Castle Silver cobalt mine property in Ontario.
In payment, the company issued 2,941,000 common shares to Granada Gold at a deemed price of 51 cents per share, for total deemed consideration of approximately $1.5-million. Each of the shares was accompanied by one common share purchase warrant. Each warrant will entitle Granada Gold to acquire one additional common share of Canada Silver Cobalt for 55 cents for a period of five years. All securities issued in connection with the repurchase are subject to a four-month-and-a-day hold period expiring on Nov. 11, 2020, in accordance with applicable securities laws.
Under the policies of the TSX Venture Exchange, Granada Gold is a non-arm's-length party to Canada Silver Cobalt in that Frank Basa, Jacques Monette, Robert Setter and Dianne Tookenay, each of whom is a director and/or officer of Canada Silver Cobalt, are also directors and/or officers of Granada Gold. In determining the purchase price, Canada Silver Cobalt relied on, among other things, a valuation opinion dated May 13, 2020, prepared by Watts, Griffis and McOuat Ltd. of Toronto. The repurchase of the back-in option is not a related-party transaction under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions).
The technical information in this news release was prepared under the supervision of Merouane Rachidi, PhD, PGeo (APGO, APEGNB and OGQ), of GoldMinds Geoservices, a qualified person in accordance with NI 43-101.
About Canada Silver Cobalt Works Inc.
Canada Silver Cobalt's flagship Castle mine and 78-square-kilometre Castle property features strong exploration upside for silver, cobalt, nickel, gold and copper in the prolific past-producing Gowganda high-grade silver-cobalt district of Northern Ontario. With an important new discovery at Castle East, underground access at the Castle mine, a processing facility (TTL Laboratories) in the nearby town of Cobalt, a proprietary hydrometallurgical process known as Re-2OX, and the Beaver and Violet properties, Canada Silver Cobalt is strategically positioned to become a Canadian leader in the silver-cobalt space.
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