TORONTO, Nov. 23, 2020 /CNW/ - First Cobalt Corp.
(TSX-V: FCC) (OTCQX: FTSSF) (the "Company") announces that it has
filed a preliminary short form base shelf prospectus with the
securities regulators in all provinces and territories of
Canada. When made final, this filing will allow the Company
to make offerings of common shares, subscription receipts,
warrants, units or any combination thereof for up to an aggregate
total of C$20 million during the
25-month period that the base shelf prospectus is effective. The
specific terms of any offering of securities, including the use of
proceeds from any offering, will be set forth in a shelf prospectus
supplement.
First Cobalt has filed this preliminary short form base shelf
prospectus with the intention that once a receipt has been provided
for a final short form base shelf prospectus, it will provide the
Company with greater financial flexibility going forward.
First Cobalt, however, has not entered into any agreements or
arrangements to authorize or offer any securities at this
time. The Company has no immediate plans to issue securities
under the base shelf prospectus, and ultimately may never issue any
securities under this prospectus. The terms of any future
securities offer will be made subject to applicable securities
laws.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy any securities. A copy of the
preliminary short form base shelf prospectus can be found on SEDAR
at www.sedar.com under the Company's profile.
Restatement of Previously Filed Financial Statements
The Company has also filed amended and restated audited
consolidated financial statements for the year-ended December 31, 2019 and amended and restated
condensed interim consolidated financial statements for the interim
periods ended March 31, 2020 and
June 30, 2020. The management
discussion and analysis associated with each of these periods has
also been amended and restated.
As part of a review of its financial statements, the Company
determined that the impairment charge taken relating to the Cobalt
Camp mineral assets at December 31,
2019 was understated. As cobalt is a specialty metal without
the same market comparable data as precious metals or other base
metals, and the properties do not yet have a mineral resource
estimate associated with them, there is a lack of cobalt-specific
data available to support an independent quantification of the
recoverable value of these properties. The Cobalt Camp has
therefore been further written down to one
dollar under IFRS. Despite this accounting write down,
the Company continues to believe in the prospectivity of the
mineral property package and expects to conduct exploration on
these assets in 2020 and 2021. In August
2020, the Company raised $1.3
million in flow through shares that it intends to invest
silver and cobalt exploration targets in the Cobalt Camp.
The previously filed financial statements for the year-end
December 31, 2019 have been restated
to adjust the write down of the Cobalt Camp by $11,945,625, resulting in a decrease in the
carrying value of the properties and an increase in the impairment
charge recorded for the 2019 year. This adjustment also
impacts the carrying value of the properties at March 31, 2020 and June
30, 2020 which required the filing of amended and restated
financials for these periods as well. The amended and
restated financial statements and associated management discussion
and analysis can be found on SEDAR under the Company's profile.
About First Cobalt
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
the Iron Creek cobalt project in Idaho,
USA and controls significant silver and cobalt assets in the
Canadian Cobalt Camp, including more than 50 past producing
mines.
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 are set
forth in the management discussion and analysis and other
disclosures of risk factors for First Cobalt, 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.
SOURCE First Cobalt Corp.