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First Cobalt raising $2 million

Aug 12, 2020

First Cobalt Corp. has announced a $2 million non-brokered private placement. First Cobalt owns North America's only permitted cobalt refinery. Cobalt refining is a critical component to the development and manufacturing of batteries for electric vehicles and forms a foundational piece of the next generation of the North American auto sector and other electrified consumer and industrial applications.

First Cobalt owns a cobalt project in the United States and controls significant mineral assets in the Canadian Cobalt Camp, including more than 50 past producing mines.It consists of an aggregate of 6,250,000 units of the Company at a price of $0.16 per Flow-Through Unit for gross proceeds of $1 million and an aggregate of 7,142,857 units of the Company at a price of $0.14 per Unit for gross proceeds of $1 million.

Each Flow-Through Unit consists of one common share of the Company qualifying as a 'flow-through share' (a "Flow-Through Share") and one-half of one common share purchase warrant (each whole common share purchase warrant a "Warrant"). Each Unit consists of one common share of the Company (a "Common Share") and one Warrant. Each full Warrant will entitle the holder thereof to purchase one Common Share of the Company at a price of $0.21 per Common Share, for a period of 24 months following the Closing Date. 

All proceeds from the sale of the Flow-Through Units will be used to incur eligible Canadian Exploration Expenses as defined in the Income Tax Act (Canada) related to the Company's projects in Ontario, Canada. 

Red Cloud Securities Inc. is acting as a finder in connection with a portion of the Offering, and the Company intends to pay finders' fees in connection with this Offering.  Proceeds of the Offering will be used by the Company to fund the advancement of First Cobalt's silver assets in Ontario and the remaining proceeds will be used for general corporate purposes. 

Closing of the Offering is expected to occur by the end of August 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. 


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