COQUITLAM, B.C., Jan. 10, 2020 /CNW/ - Canada Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the "Company" or "Canada Cobalt") is pleased to announce that it has closed its deal to acquire the only facility ("PolyMet Labs") in the Northern Ontario Silver-Cobalt district that combines bullion pouring, bulk sampling, commercial assaying and e-waste processing.
The Transaction, completed at an opportune time in the precious metals cycle, provides Canada Cobalt with multiple immediate and long-term advantages as a fully integrated leader in Canada's Silver-Cobalt heartland. The lab and mineral processing facility in the town of Cobalt, within just 50 meters of a rail line and just a short distance from Canada Cobalt's Castle and Beaver properties, will also become the new home of the Company's environmentally friendly Re-2OX Process.
Terms of Transaction
Canada Cobalt's newly-formed wholly-owned subsidiary, Temiskaming Testing Laboratories Inc. ("TTL"), and PolyMet Resources Inc. ("PolyMet") have entered into a definitive asset purchase agreement dated January 8, 2020 (the "Purchase Agreement") pursuant to which TTL has agreed to purchase substantially all of the assets of PolyMet (the "Transaction").
Under the terms of the Purchase Agreement, Canada Cobalt will issue an aggregate of 690,409 units to PolyMet at a deemed price of $0.45 per unit for total consideration of approximately $310,684. Each unit comprises one common share and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share of Canada Cobalt at an exercise price of $0.50 for a period of two years from closing of the Transaction. TTL will also assume certain outstanding obligations of PolyMet in an amount of approximately $339,316.
The Transaction is subject to standard closing conditions, including approval by the TSX Venture Exchange. The shares and warrants to be issued to PolyMet will be subject to restrictions on resale for a period of four months from the closing date of the Transaction.
About Canada Cobalt Works Inc.
Canada Cobalt has 100% ownership of the Castle mine and the 78 sq. km Castle Property with strong exploration upside in the prolific past producing Gowganda high-grade Silver Camp of Northern Ontario. With underground access at Castle, a pilot plant to produce cobalt-rich gravity concentrates on site, 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 Cobalt is strategically positioned to become a vertically integrated North American leader in cobalt extraction and recovery while it also exploits a powerful new silver-gold market cycle.
"Frank J. Basa"
Frank J. Basa, P. Eng.
President and 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. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE Canada Cobalt Works Inc.
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Frank J. Basa, P.Eng., President and CEO, 1-416-625-2342; Marc Bamber, Director, firstname.lastname@example.org, +44-7725-960939