TSX Venture: KBLT
OTCQX:
CBLLF
FRA: 27O
TORONTO, Oct. 24, 2019 /CNW/ - Cobalt 27 Capital
Corp. ("Cobalt 27" or the "Company") (TSXV:
KBLT)(OTCQX: CBLLF)(FRA: 27O) is pleased to
announce that it expects the completion of the previously-announced
plan of arrangement under the Business Corporations Act
(British Columbia)
("Arrangement") to occur during the morning of October 25, 2019. The Arrangement provides for
the acquisition by Pala of 100% of Cobalt 27's issued and
outstanding common shares (other than the approximately 19% that
Pala already owned), and the creation of a new company, Nickel 28
Capital Corp., that has been renamed as Conic Metals Corp.
("Conic").
The Arrangement was approved by Cobalt 27's shareholders at an
annual general and special meeting held on October 11, 2019, and by the Supreme Court of
British Columbia on October 16, 2019. Under the terms of the
Arrangement, each Cobalt 27 common share will be exchanged for
C$4.00 in cash and one common share
of Conic.
Conic will be a base metals company with a focus on offering
direct exposure to nickel and cobalt, integral elements in key
technologies of electric vehicles and energy storage systems.
Pursuant to the Arrangement, Cobalt 27 will transfer certain assets
to Conic, including the 8.56% joint-venture interest in Ramu, a
low-cost, long-life, producing nickel-cobalt mine and integrated
refinery; a royalty portfolio on future projects; and certain
equity positions including equity in Giga Metals Corporation.
The TSX Venture Exchange (the "TSX-V") has conditionally
approved the listing of the Conic common shares and it is
anticipated that the Conic shares will commence trading on the
TSX-V in early November under the symbol "NKL" upon final
acceptance of Conic's Form 2B Listing Statement and other related
deliverables. Cobalt 27 intends to promptly apply to de-list its
common shares from the TSX-V and cease to be a reporting issuer in
each of the provinces and territories of Canada.
The Company also confirms that it has been notified by
majority-owner and operator Metallurgical Corporation of China
Limited ("MCC"), that processing at the Ramu Process
Facility has been temporarily suspended to undertake remedial works
to protect against potential future incidents similar to the
reported occurrence on 24th August 2019. These
works include increases in retainment bunds, instrumentation
enhancements, improvements to preventative maintenance systems and
undertaking increased safety and training measures. MCC is working
with the Papua New Guinea
government authorities, whose representatives are at site, to
ensure process operations can recommence full operation as soon as
possible. Furthermore, the Company has been advised by MCC that the
Ramu Process Facility has approximately 2 to 3 months of stockpiled
inventory on hand and the planned suspension of processing activity
is not expected to have a material impact on sales during the
period.
About Cobalt 27 Capital Corp.
Cobalt 27 Capital Corp. is a leading battery metals streaming
company offering exposure to metals integral to key technologies of
the electric vehicle and energy storage markets. Cobalt 27 holds an
8.56% joint venture interest in the long-life, world-class Ramu
mine which currently delivers near-term attributable nickel and
cobalt production. Cobalt 27 also manages a portfolio of 11
royalties. Cobalt 27 also owns physical cobalt and a cobalt stream
on the Voisey's Bay mine.
For further information please visit the Company website at
www.cobalt27.com
Cautionary Note Regarding Forward-Looking
Statements
This news release contains certain information which
constitutes 'forward-looking statements' and 'forward-looking
information' within the meaning of applicable Canadian securities
laws. Any statements that are contained in this news release that
are not statements of historical fact may be deemed to be
forward-looking statements. Forward looking statements are often
identified by terms such as "may", "should", "anticipate",
"expect", "potential", "believe", "intend" or the negative of these
terms and similar expressions. Forward-looking statements in this
news release include, but are not limited to statements with
respect to: the expected completion of the Arrangement and the
timing thereof, the anticipated benefits associated with the
Arrangement; the consideration to be received by shareholders of
Cobalt 27, which may fluctuate in value due to Conic common shares
forming part of the consideration; the business and assets
(including their implied value) of Conic and its strategy going
forward; the timing for trading commencement of Conic shares,
de-listing of the Cobalt 27 shares and Cobalt 27 ceasing to be a
reporting issuer; developments at the Ramu mine and the expected
impact thereof on future operations, product and sales. Readers are
cautioned not to place undue reliance on forward-looking
statements. Forward-looking statements involve known and unknown
risks and uncertainties, most of which are beyond the Company's
control. For more details on these and other risk factors see the
Company's most recent Annual Information Form on file with Canadian
securities regulatory authorities on SEDAR at
www.sedar.com under the heading "Risk Factors". Should one or
more of the risks or uncertainties underlying these forward-looking
statements materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results,
performance or achievements could vary materially from those
expressed or implied by the forward-looking statements.
The forward-looking statements contained herein are made as
of the date of this release and, other than as required by
applicable securities laws, the Company does not assume any
obligation to update or revise them to reflect new events or
circumstances. The forward-looking statements contained in this
release are expressly qualified by this cautionary
statement.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. No securities regulatory authority has
either approved or disapproved of the contents of this news
release.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/cobalt-27-provides-updates-on-the-closing-of-the-plan-of-arrangement-with-pala-investments-the-creation-of-conic-metals-and-developments-related-to-the-ramu-mine-300945087.html
SOURCE Cobalt 27 Capital Corp
