CobalTech Provides Update on Merger With First Cobalt
TORONTO, ON --(Marketwired - October 26, 2017) -
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE
UNITED STATES
COBALTECH MINING INC. (TSX VENTURE: CSK)
(the"Company"or"CobalTech"), is pleased to announce that the Information Circular and related
proxy materials for the previously announced merger with First Cobalt Corporation ("First Cobalt") (TSX VENTURE: FCC) (OTC: FTSSF) have been mailed to shareholders. Under the
terms of the Arrangement, CobalTech will receive 0.2632 of a First Cobalt common share for each CobalTech common share (a
"CobalTech Share"), representing the equivalent of $0.20 per CobalTech Share.
Under the terms of the Arrangement, consent must be obtained from registered shareholders and voting material has been mailed
for the vote scheduled for November 21st, 2017. Shareholders of record as of September 22, 2017 will be entitled to
vote at the meeting.
The Arrangement has a number of benefits for CobalTech shareholders.
Benefits to CobalTech Shareholders:
- Creates a leading pure-play cobalt exploration company with a portfolio of high quality exploration assets, 14 former
producing mines and a mill facility in the Cobalt, Ontario mining camp.
- Experienced management team based in Toronto, with a proven track record of discovery, development, and finance, and
located in close proximity to the Cobalt Camp.
- Increased scale of the combined company will enhance its capital markets profile, liquidity, provide greater access to
capital across the exchanges and provides for rerating potential.
- CobalTech will maintain a position in First Cobalt, allowing for upside participation as First Cobalt progresses with
exploration programs.
Terms of the Arrangement
Under the terms of the Arrangement, CobalTech will receive 0.2632 of a First Cobalt common share for each CobalTech common
share (a "CobalTech Share"), representing the equivalent of $0.20 per CobalTech Share as of the date of the announcement of the
merger.
Completion of the Arrangement is subject to a number of conditions, including approval by the shareholders of CobalTech and
receipt of all required regulatory approvals, including the approval of the TSXV. The Arrangement cannot close until these
conditions are satisfied and the required approvals are obtained.
ON BEHALF OF THE BOARD
(signed) "Bruce Bragagnolo"
Bruce Bragagnolo
Chief Executive Officer
About CobalTech
CobalTech Mining Inc. is a North American cobalt company with assets in Cobalt, Ontario, Canada in an area
known for its geological setting responsible for unique mineralization composed of quartz-carbonate veins enriched in
silver-cobalt-nickel-bismuth-arsenic.
Neither TSX Venture Exchange nor its Regulations 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 Statement Regarding "Forward-Looking" Information
Some of the statements contained in this press release are forward-looking statements and information within
the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such
as "plans", "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements
that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond
the Company's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or
implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on
forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking
statements, except as may be required by law.