Ac­cend Cap­i­tal closes Sil­ver­side ac­qui­si­tion, fi­nanc­ing

Stockwatch Daily - - SHELLS - Mr. Si­mon Clarke re­ports

AC­CEND CAP­I­TAL Corp. has com­pleted its ac­qui­si­tion of the Sil­ver­side cobalt prop­erty, which con­sti­tutes the com­pany’s qual­i­fy­ing trans­ac­tion.

The prop­erty con­sists of a se­ries of min­eral claims cover­ing ap­prox­i­mately 384 hectares in Lundy town­ship, ap­prox­i­mately 30 kilo­me­tres north­east of Cobalt in On­tario. In con­sid­er­a­tion for the prop­erty, the com­pany has paid $200,000 and is­sued 200,000 com­mon shares to the un­der­ly­ing ven­dors. The prop­erty will re­main sub­ject to a 2.0-per-cent net milling re­turns roy­alty, one-half of which may be pur­chased by the com­pany in con­sid­er­a­tion for a cash pay­ment of $1-mil­lion.

The trans­ac­tion also in­cludes the right to ac­quire an ad­di­tional 2,400 hectares sur­round­ing the prop­erty for a pe­riod of 90 days. This right can be ex­er­cised by com­plet­ing cash pay­ments to­talling $175,000 and is­su­ing 250,000 com­mon shares of the com­pany, of which the com­pany has paid $25,000 and is­sued 50,000 com­mon shares to date.

In con­nec­tion with the trans­ac­tion, the com­pany has com­pleted a non-bro­kered pri­vate place­ment of 10 mil­lion units at a price of 20 cents per unit for gross pro­ceeds of $2-mil­lion. Each unit con­sists of one com­mon share of the com­pany and one-half of one com­mon share pur­chase war­rant. Each whole war­rant en­ti­tles the holder to ac­quire a fur­ther com­mon share of the com­pany at a price of 40 cents per share for pe­riod of 24 months, sub­ject to ac­cel­er­ated ex­piry in the event the com­mon shares of the com­pany trade on the ex­change at a price of 75 cents or higher for 10 con­sec­u­tive trad­ing days.

Fol­low­ing com­ple­tion of the trans­ac­tion and the fi­nanc­ing, the com­pany has ap­pointed Gra­ham Har­ris to its board of di­rec­tors and has ap­pointed Si­mon Clarke as chief ex­ec­u­tive of­fi­cer. The board of di­rec­tors of the com­pany now con­sists of Andy Edelmeier, Mr. Clarke, Michael Kobler and Mr. Har­ris. Mr. Edelmeier will con­tinue to serve as chief fi­nan­cial of­fi­cer and cor­po­rate sec­re­tary of the com­pany.

The com­pany also an­nounces that it will grant 2,507,500 in­cen­tive stock op­tions to cer­tain di­rec­tors, of­fi­cers and con­sul­tants of the com­pany. The op­tions vest upon grant and are ex­er­cis­able at a price of 20 cents for a pe­riod of 36 months. Com­ple­tion of the grant of op­tions re­mains sub­ject to the ap­proval of the ex­change.

Mr. Clarke com­mented: “We are de­lighted to com­plete this trans­ac­tion, which en­ables us to fo­cus the com­pany on cobalt ex­plo­ration with the goal of dis­cov­er­ing sig­nif­i­cant new cobalt de­posits. Cobalt is a crit­i­cal el­e­ment in lithium-ion bat­ter­ies. With the rapid adop­tion of elec­tric bat­tery tech­nolo­gies, new sources of cobalt sup­ply are ur­gently needed to ad­dress grow­ing sup­ply short­ages.

“Cur­rently it is es­ti­mated that over 60 per cent of global cobalt sup­ply orig­i­nates from the Demo­cratic Repub­lic of the Congo, which faces sig­nif­i­cant child labour and ‘con­flict min­er­als’ is­sues. The com­pany is fo­cused on dis­cov­er­ing new cobalt de­posits in ar­eas of the world which do not uti­lize child labour and where cobalt pro­duc­tion is ‘con­flict free.’ The Sil­ver­side prop­erty is sit­u­ated close to the town of Cobalt, On­tario, where cobalt has been mined his­tor­i­cally and sig­nif­i­cant cobalt ex­plo­ration is cur­rently un­der way.”

We seek Safe Har­bor.

Erika Flores con­densed this news re­lease (erikaf@stock­

Si­mon Pa­trick Clarke, An­dreas Tom Edelmeier, Michael H Kobler

(ADP) Shares: 14,825,000

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