First Cobalt Announces Letter to Shareholders
TORONTO, ONTARIO--(Marketwired - Aug. 14, 2017) - First Cobalt Corp. (TSX VENTURE:FCC)(OTC:FTSSF) (the "Company") has today released a letter to shareholders from the Company's President and CEO, Trent Mell, to provide an update on the Company's transactions and business activities to date. This letter is available on our website at www.firstcobalt.com.
I am pleased to provide you with an update on recent business activities as well as the status of the two mergers we announced on June 26th with Cobalt One Limited and CobalTech Mining. Management has been extremely busy over the summer months and we are very excited about our accomplishments.
Over the last few months, we have been busy with road shows, taking us all over the world to New York, London, Zurich, Hong Kong, and Australia where we have experienced significant institutional demand for First Cobalt. It has become very clear that many in the institutional world view the mergers as one of the best ways to get exposure to a rapidly growing cobalt space. This has served to enhance our confidence that once the mergers are complete the new First Cobalt will offer investors exposure to:
- One of the Largest Cobalt Companies in the World
As one of the largest pure-play cobalt companies in the world, the new First Cobalt will benefit from increased liquidity, better access to capital and institutional investor interest, which in turn will allow us to accelerate our consolidation, exploration and development plans for the Camp.
- A Consolidated Cobalt-Rich Mining Camp
First Cobalt will control a significant portion of the prospective properties in the Cobalt, Ontario mining district upon completion of the transactions. This Camp been under-explored for its cobalt potential and has never before seen the meaningful land consolidation achieved with these mergers, which will facilitate regional exploration for open pit potential.
Consummation of the transactions is progressing as planned. Here is a brief update:
- Trading of First Cobalt stock has been halted while Canadian regulators review the transaction. We understand trading could resume in a matter of days. We will inform the market as soon as we have a date.
- Canaccord Genuity, our financial advisors, arranged institutional investor meetings around the world. The reception has been very positive and I look forward to having some as First Cobalt shareholders.
- First Cobalt's Management and Board of Directors met with board nominees Paul Matysek, Bob Cross, and Jason Bontempo to discuss corporate strategy for the new First Cobalt. The group has good alignment of vision and we anticipate an increase in exploration activities upon closing the transactions.
- Due diligence and legal documentation are advanced and we appear to be on track to close both transactions later in the fall of 2017.
Meanwhile, Dr. Frank Santaguida, P.Geo. and Peter Campbell, P.Eng. have been advancing works on our current projects:
- Drilling at Keeley-Frontier commenced August 8th and will continue for at least 10 weeks (click here for press release).
- We have hired a full-time senior geologist to work in Cobalt with Frank to oversee the day-to-day activities of our exploration team.
- Peter is working with consultants to assess near-term cash flow potential using the CobalTech mill, the Cobalt One refinery site, and the stockpiles of unprocessed mineralized material discarded by historic mining operators.
- Post-merger integration plans are underway, including an expansion of exploration and drilling activities directed by First Cobalt, without increasing corporate staffing levels.
- Management hosted a site visit in August for some sell side analysts and is planning buy side visits for September and October.
The current 2017 exploration program is intended to provide a better understanding of the distribution and extent of cobalt mineralization within the historic Keeley-Frontier Mine and explore other silver-cobalt prospects on the property. Initial assays from the drill campaign are anticipated in September. Exploration work completed to date includes structural mapping of Keeley-Frontier, outcrop mapping and sampling, multi-element geochemical data interpretation, downhole televiewer surveys and a review of acquired airborne magnetic data. All data are being integrated within a 3D geological model that is based on about 50 years of data on our Greater Cobalt Project area, which will contribute to the development of a geological model for the Camp.
With very few prospective cobalt exploration programs outside the DRC, we are uniquely positioned to benefit from the strong cobalt market. Our Greater Cobalt Project is arguably the only camp-scale exploration program focused on discovering cobalt resources in the world.
Moving forward, it is my goal to make First Cobalt the "go to" name for exposure to the cobalt space. I believe we offer everything that sophisticated institutional investors are looking for:
- Industry Leading Team
- District Scale Cobalt Development Camp
- Pathway to Cobalt Production
On behalf of First Cobalt's management team and Board of Directors, I would like to thank you for your support. I truly believe that our best days are ahead of us and I will continue to work tirelessly for your interests.
Trent Mell, President & CEO
About First Cobalt
First Cobalt's objective is to create the largest pure-play cobalt exploration and development company in the world. The Company's primary focus is on its Greater Cobalt Project; almost 3,000 hectares of prospective land in the Cobalt camp in Ontario, Canada, including an option for the former producing Keeley-Frontier mine, a high-grade mine that produced over 3.3 million pounds of cobalt and 19.1 million ounces of silver from 301,000 tonnes of ore, as well as a joint venture on a fully permitted cobalt refinery in Cobalt, Ontario. The Company also has interests in prospective copper-cobalt properties in the Democratic Republic of the Congo all with known surface mineralization.
On behalf of First Cobalt Corp.
Trent Mell, 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 Statements
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. 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 include the reliability of the historical data referenced in this press release and risks set out in First Cobalt's public documents, including in each management discussion and analysis, filed on SEDAR at www.sedar.com. Although First Cobalt 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, First Cobalt disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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