TORONTO, Jan. 22, 2020 /CNW/ - First Cobalt Corp. (TSX-V:
FCC; OTCQX: FTSSF) (the "Company") is pleased to announce a
non-brokered private placement of up to 10,715,000 units (the
"Units") of the Company at a price of $0.14 per Unit for gross proceeds of up to
$1,500,000 (the "Offering"). The
Company has received a commitment from a strategic investor to
subscribe for $750,000 of the Units
in the Offering.
Each Unit issued pursuant to the Offering will consist of one
common share in the capital of the Company and one common share
purchase warrant (a "Warrant"). Each Warrant will entitle the
holder thereof to purchase one additional Common Share at a price
of $0.21 for a period of two years.
The Warrants are subject to accelerated expiry if the closing price
of the common shares of the Company is equal to or greater than
$0.37 per share for a period of ten
consecutive trading days, in which case the Company will have the
option, but not the obligation, to accelerate the expiry to 20
calendar days from the date of notice.
Red Cloud Securities is acting as a finder in connection with a
portion of the Offering, and the Company intends to pay finders'
fees in connection with completion of this portion of the
Offering. Proceeds of the Offering will be used by the
Company to fund the advancement of the First Cobalt Refinery as
well as for general corporate purposes.
Closing of the Offering is expected to occur by the end of
January 2020 and is subject to
receipt of regulatory approvals, including the approval of the TSX
Venture Exchange. The securities to be issued under the Offering
will have a hold period of four months and one day from their
issue. The securities being offered will not be registered under
the United States Securities Act of 1933, as amended and may not be
offered or sold within the United
States absent registration or an exemption from the
registration requirements. This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the
securities in the United
States.
About First Cobalt
First Cobalt is a North American cobalt company and owner of the
only permitted primary cobalt refinery in North America. The Company is exploring a
restart of the First Cobalt Refinery in Ontario, Canada, which could produce over
25,000 tonnes of cobalt sulfate per year from third party feed.
First Cobalt's main cobalt exploration project is the Iron Creek
Cobalt Project in Idaho, USA,
which has an indicated and inferred mineral resource estimate
available on the Company's website. The Company also controls a
significant land package in the Canadian Cobalt Camp spanning over
100 km2, which contains more than 50 past producing
mines.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
Neither the 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.
SOURCE First Cobalt Corp.