/NOT FOR DISSEMINATION IN
THE UNITED STATES OR FOR
DISTRIBUTION TO U.S. NEWSWIRE SERVICES./
TORONTO, Oct. 20, 2021 /CNW/ - First Cobalt Corp.
(TSXV: FCC) (the "Company") is pleased to announce that it
has received notice of the full exercise of a US$7.5 million option by investors in the
Company's recently completed offering of 6.95% senior secured
convertible notes due December 1,
2026 (the "Notes").
Pursuant to subscription agreements entered into between the
Company and each investor on August 23,
2021 with respect to the Notes, each investor had the right
to subscribe for additional Notes, pro rata, for an
aggregate additional principal amount of up to US$7.5 million. The additional Notes are expected
to be issued on October 22, 2021.
The offering of Notes was led by Cantor Fitzgerald & Co., as
sole placement agent.
For additional information with respect to the Notes and the
terms thereof, refer to the Company's news releases dated
August 23, August 24, and September
3, 2021, the Company's material change report dated
September 2, 2021, and the indenture
governing the Notes, each of which is publicly available under the
Company's SEDAR profile at www.sedar.com.
"We are happy to have the continued support from the
Noteholders. This is a great vote of confidence in the team's
ability to create long-term shareholder value as we continue to
move our refinery project forward toward commissioning, set for
Q4'2022; at which point we'll be North
America's only source of high-quality, sustainable and
traceable battery grade cobalt sulfate", said Chief Financial
Officer, Ryan Snyder.
The Company intends to use the aggregate net proceeds of the
option exercise for capital expenditures associated with the
expansion and recommissioning of its wholly-owned
hydrometallurgical refinery located in Ontario, Canada (the "Refinery"),
including buildings, equipment, infrastructure, and other direct
costs, as well as engineering and project management costs.
The securities offered have not been, and will not be,
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any applicable U.S.
state securities laws, and may not be offered or sold in
the United States absent
registration or an available exemption from the registration
requirement of the U.S. Securities Act and applicable U.S. state
securities laws. This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. This press release does not
constitute an offer to sell, or a solicitation of an offer to buy,
any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer or sale would be unlawful.
About First Cobalt
First Cobalt's mission is to be a producer of diversified
high-quality and sustainable battery materials for the North
American battery supply chain. The Company owns a permitted
hydrometallurgical refinery in Ontario,
Canada, a critical asset in the development and
manufacturing of batteries for electric vehicles. First Cobalt also
owns the Iron Creek cobalt-copper project in Idaho, USA as well as several significant
cobalt and silver properties in the Canadian Cobalt Camp.
On behalf of First Cobalt Corp.
President & Chief Executive Officer
Neither 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.
Cautionary Note Regarding Forward-Looking
This news release may contain forward-looking statements and
forward-looking information (together, "forward- looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Specifically, statements with respect
to the use of proceeds of the exercise of the investor option, the
development of the Refinery, and other matters ancillary or
incidental to the foregoing are forward looking statements.
Generally, forward-looking statements can be identified by the use
of terminology such as "plans", "expects', "estimates", "intends",
"anticipates", "believes" or variations of such words, or
statements that certain actions, events or results "may", "could",
"would", "might", "occur" or "be achieved". Forward-looking
statements involve risks, uncertainties and other factors that
could cause actual results, performance and opportunities to differ
materially from those implied by such forward-looking statements.
Factors that could cause actual results to differ materially from
these forward-looking statements are set forth in the management
discussion and analysis and other disclosures of risk factors for
the Company, filed on SEDAR at www.sedar.com, and are included in
the Base Shelf Prospectus and the Prospectus Supplement. Although
the Company believes that the information and assumptions used in
preparing the forward-looking statements are reasonable, undue
reliance should not be placed on these statements, which only apply
as of the date of this news release, and no assurance can be given
that such events will occur in the disclosed times frames or at
all. Except where required by applicable law, the Company disclaims
any intention or obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
SOURCE First Cobalt Corp.