TORONTO, May 17, 2018 /CNW/ - Cobalt Blockchain Inc.
("COBC" or the "Company") (TSXV:COBC) is pleased to provide a
corporate update related to progress on expanding its existing
commodity trading business to include certified, ethically-sourced
cobalt from the Democratic Republic of
the Congo ("DRC").
Private Placement
The Company has engaged IBK Capital Corp. ("IBK Capital") to
complete a private placement of up to 12,000,000 common shares at a
price of $0.25 per common share (the
"Private Placement") for gross proceeds of up to $3,000,000. Use of proceeds from the Private
Placement include establishment of cobalt trading operations,
initial cobalt concentrate purchases, mineral processing equipment,
transaction costs, costs associated with technology platform
development, and general working capital.
In connection with the Private Placement, the Company has agreed
to pay IBK Capital a cash commission equal to 8% of the amount
raised and broker warrants equal to 10% of the number of common
shares issued pursuant to the Private Placement. Each broker
warrant is exercisable into one common share at a price of
$0.25 per common share for a period
of five years from the date of issuance.
Copper/Cobalt Trading License
The Company has received approval from DRC provincial
authorities in Lualaba and Haut-Katanga provinces for the necessary
licensing required to establish trading depots, purchase copper and
cobalt concentrates, and export to international buyers.
All associated licensing fees and studies have now been
submitted to the federal Ministry of Mines, with final ratification
expected shortly.
Trading Depot Construction
COBC has begun initial arrangements to set up its cobalt trading
facilities in the DRC, which will include a 1,000 square metre
depot with storage, assay lab, clinic and office capabilities. The
depot site will also incorporate perimeter fencing and security
equipment.
On completion of the trading depot, COBC will purchase its first
cobalt concentrate from COMIKU as per the cobalt supply agreement
announced on April 6, 2018. Under
this supply agreement, and commencing in June 2018, COBC will be supplied with a minimum
of 40,000 tonnes of cobalt concentrate per annum, with a minimum
grade of 1% cobalt.
Supply Chain Provenance
COBC is the first mining and mineral trade company set up
specifically to procure cobalt in compliance with the OECD due
diligence framework.
This compliance framework ensures that the Company's local
operations and supply chain contribute positively towards
addressing child labour and other challenges associated with
artisanal and small-scale mining (ASM) in the DRC.
Since March this year, COBC has been working with BetterChain
S.L. to develop an Autonomous Due Diligence (ADD)
Protocol. The protocol can be used by any upstream mining and
mineral trade operator to demonstrate OECD compliance and improve
upstream reporting, whether sourced via ASM or otherwise, and
throughout the mining supply chain.
COBC is also continuing to work with other partners toward
establishing its blockchain provenance platform, which will be
piloted in parallel with the Company's OECD-compliant due diligence
framework.
Conferences and Events
Over the past few months, the Company has presented keynotes and
participated in panels at key mining and blockchain events,
including at the Canadian Council on Africa, Investing in African Mining Indaba,
Blockchain Toronto, and the InvestorIntel Summit.
COBC will also be at the following upcoming conferences and
events:
- May 23-24: Cobalt Institute
Conference, Las Vegas, Nevada
- May 23-24: IFC Sustainability
Conference, Washington, DC
- June 1: Blockchain for Social
Impact, Washington, DC
- June 14-15: Mining Investment
North America, Toronto, ON
- June 13-15: DRC Mining Week,
Lubumbashi, DRC
- June 19: Empire Club - Blockchain
Revolution, Toronto, ON
About Cobalt Blockchain Inc.
Cobalt Blockchain Inc. (TSXV:COBC) is a Canadian resource
company expanding its exploration and development business to
include cobalt assets in the Democratic
Republic of the Congo (DRC). COBC has acquired a 100%
interest in an existing metals trading business specializing in
sourcing minerals from artisanal and small-scale mines in the DRC,
in compliance with international procurement standards. Leveraging
its experience with existing supply chain due diligence
initiatives, COBC is working with partners to develop a
blockchain-based reporting platform to provide greater certainty of
provenance and further assurance that all minerals procured are
ethically-sourced. Senior management have over twelve years of
experience working in the DRC and a proven international track
record in exploration success and the trading of certified
conflict-free, child-labour-free minerals.
Forward-Looking Information
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address future
production, reserve potential, exploration drilling, exploitation
activities and events or developments that the Company expects are
forward-looking statements. Although the Company believes the
expectations expressed in such statements are based on reasonable
assumptions, such statements are not guarantees of future
performance and actual results or developments may differ
materially from those in the statements. There are certain factors
that could cause actual results to differ materially from those in
forward-looking statements. These include market prices,
exploitation and exploration successes, continued availability of
capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are
not guarantees of future performance and actual results or
developments may differ materially from those projected in the
forward-looking statements. For more information on the Company,
investors should review registered filings at www.sedar.com.
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.
SOURCE Cobalt Blockchain Inc.