Accend Capital closes Silverside acquisition, financing
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.”
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Erika Flores condensed this news release (email@example.com).
Simon Patrick Clarke, Andreas Tom Edelmeier, Michael H Kobler
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