Accend Capital Corporation (TSX-V: ADP.H) is pleased to announce that it has completed its acquisition of the Silverside cobalt property which constitutes the Company’s “Qualifying Transaction” in accordance with TSX Venture Exchange Policy 2.4 — Capital Pool Companies.
The Property consists of a series of mineral claims covering approximately 384 hectares in Lundy Township, approximately 30 kilometers’ northeast of Cobalt, 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 two (2.0%) percent net milling returns royalty, one-half of which may be purchased by the Company in consideration for a cash payment of $1,000,000.
The Transaction also includes the right to acquire an additional 2,400 hectares surrounding the Property for a period of ninety days. This right can be exercised by completing cash payments totaling $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 10,000,000 units at a price of $0.20 per unit for gross proceeds of $2,000,000. 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 $0.40 per share for period of twenty-four months, subject to accelerated expiry in the event the common shares of the Company trade on the Exchange at a price of $0.75 or higher for ten consecutive trading days. All securities to be issued by the Company pursuant to the Transaction and the Financing are subject to a four-month statutory hold period.
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, Simon Clarke, Michael Kobler and Graham Harris. Mr. Edelmeier will continue to serve as Chief Financial Officer and Corporate Secretary of the Company.
Historic exploration on the Property dates back to the early 1900s. In 1985 Silverside Resources Inc. conducted extensive geological mapping of the Property and completed approximately 1,312 meters of diamond drilling in eight drill holes. The exploration target at that time was vein-hosted silver mineralization, similar to that at the Cobalt, Ontario camp. Past exploration results indicated high silver and notable cobalt values associated with vein-hosted chalcopyrite mineralization on the Property. Past geological mapping also indicates that the area is underlain by the Nipissing Diabase and Cobalt Group sedimentary rocks, including argillite, siltstone and quartzite. Past records also note the doming of the Nipissing Diabase, a structural feature associated with the Ag-Co veins surrounding Cobalt, Ontario.
Recent field work, including airborne magnetic and VLF-EM surveys as well as geochemical sampling, has helped identify certain anomalies and structures (including vein-hosted cobalt) and has corroborated some of the historic exploration work done on the Property. Based on the recent and historic exploration work carried out on the Property, the technical report commissioned by the Company in connection with the Transaction recommends a phased approach to further exploration. Phase 1 envisages additional survey and mapping work including trenching and initial drilling to further corroborate and target zones of cobalt mineralization on the Property. Based on the results of this initial phase, a more extensive drilling program is envisaged as Phase 2.
For further information regarding the Transaction and the Property, readers are encouraged to review the filing statement related to the Transaction, and the technical report prepared for the Company in respect of the Property, both of which are available under the Company’s profile at www.sedar.com. Following completion of the Transaction, the Company will be listed on the Exchange as a Tier 2 Mining Issuer and trading in its common shares will resume at the open of markets on October 16, 2017, under the ticker symbol “ADP”.
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 $0.20 for a period of thirty-six months. Completion of the grant of options remains subject to the approval of the Exchange.
Simon Clarke, Chief Executive Officer of the Company, 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% 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 underway.”
The technical content of this news release has been reviewed by Adrian Smith, P.Geo., a Qualified Person as that term is defined in National Instrument 43-101 — Standards of Disclosure for Mineral Projects.
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