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Cobalt Power Group Inc. Closes Non-Brokered Private Placement with Hochschild Mining Holdings Limited and Establishes an Alliance

V.PGP

Canada NewsWire

/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRES./

TSX.V: CPO

VANCOUVER, Aug. 31, 2017 /CNW/ - Cobalt Power Group Inc. (the "Company") (TSX.V: CPO, OTC Pink: CBBWF) is pleased to announce that it has closed the private placement announced on August 21, 2017 as a result of which CPO has issued 4,886,538 units of CPO at a price of CDN$0.13 per unit to Hochschild Mining Holdings Limited ("Hochschild").  Each unit consists of one common share and one half of one non-transferrable share purchase warrant, with each one warrant being exercisable to purchase one additional common share of CPO over a period of two years from closing at a price of CDN$0.30 per share.

Cobalt Power Group Inc. (CNW Group/Cobalt Power Group Inc)

The common shares forming part of the unit and any shares that might be acquired on the exercise of warrants attached to the unit have been or will be issued subject to a four month hold period expiring December 26, 2017.

By virtue of the private placement Hochschild has received the following additional rights:

  1. the right to option and joint venture one of CPO's properties to be selected by Hochschild in its sole discretion on the terms set out in CPO's news release of August 21, 2017.

  2. the right to appoint a director to the Board of CPO following the closing and as long as Hochschild holds a minimum of 5% of the issued and outstanding shares of CPO; and

  3. the right to top up its shareholder holdings in CPO in order to maintain its percentage interest in the outstanding share capital of CPO.  The exercise of the top up right is optional and may be exercised through further private placements to be made at a price equal to the average 20 day volume weighted market price of CPO's common shares as traded on the TSX Venture Exchange subject to the application of the minimum pricing policies of the TSX Venture Exchange. 

The placement was closed after receipt of TSX Venture Exchange conditional approval.   

About Hochschild Mining Holdings Limited

Hochschild Mining Holdings Limited is a wholly owned subsidiary of Hochschild Mining plc- both English companies.  Hochschild Mining plc is based in Lima, Peru and currently trades on the London Stock Exchange.  Hochschild is a well-established senior mining company with over 60 years operating experience in the Americas.  It currently operates four underground mines focused on the production of precious metals, of which three are located in Peru and one in Argentina.

About Cobalt Power Group Inc.

Cobalt Power Group Inc. is a publicly traded Canadian exploration company listed on the TSX-Venture Exchange and U.S. Pink Sheets (TSX-V: CPO, OTC Pink: CBBWF) focused on cobalt exploration and development.

The Company has made a series of strategic property acquisitions over the past year, seeking cobalt mineralization near Cobalt, Ontario - a region with a long history of silver and associated cobalt production. Property holdings total 863.6 hectares (2134 acres) in contiguous and strategic claim blocks. There are several historic mining operations on the properties that are potentially accessible, including the Smith Cobalt shaft and its underground workings.

Chris M. Healey, P. Geo, a Director of Cobalt Power Group is the qualified person responsible for the technical content of this release, and consents to its dissemination.

On behalf of the Board of Directors

______________________________
Dr. Andreas Rompel, President and CEO
Cobalt Power Group Inc.

www.cobaltpowergroup.com

We seek safe harbor.

Neither 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.

Forward Looking Information

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release. WARNING: The Company relies on litigation protection for `forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company. This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Cautionary Statement on Forward Looking Statement

Certain information contained in this news release, including information as to our strategy, projects, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward looking statements". Actual results may differ materially from those indicated by such statements. All statements, other than historical fact, included herein, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

In connection with the forward-looking information contained in this news release, CPO has made numerous assumptions. While CPO considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause CPO's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein.

A more complete discussion of the risks and uncertainties facing CPO is disclosed in CPO's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and CPO disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

SOURCE Cobalt Power Group Inc

View original content with multimedia: http://www.newswire.ca/en/releases/archive/August2017/31/c2099.html



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