Global Cobalt Closes Over-Subscribed Private Placement; Raises $2.379 Million
VANCOUVER, BC - JANUARY 13TH, 2014 Global Cobalt Corp. (TSXV:GCO) ("Global Cobalt" and/or the "Company") announces that it has closed the non-brokered private placement announced on December 16th, 2013 and revised on December 17th, 2013 (the "Offering"). The over-subscribed Offering resulted in gross proceeds of $2.379 million to be used for operating capital to continue advancing the Company's Karakul Cobalt Project, and for general working capital.
"Our team is delighted by the positive response to the Offering. This support reflects the recognition of both the inherent value and upside potential of the Company's assets, and of the significant advances the Company has made and delivered on with respect to its corporate and project milestones during the past year," said Erin Chutter, President and CEO.
The Company issued 11,896,999 Units at a unit price of $0.20 per Unit for gross proceeds of $2,379,399. Each Unit consists of one common share (a "Share") of the Company and one-half of one common share purchase warrant (a "Warrant"). Each whole transferable Warrant entitles the holder thereof to purchase one Share of the Company at an exercise price of $0.35 per share until the close of business on January 13th, 2017. Securities issued pursuant to the Offering will be subject to a hold period ending on May 13th, 2014.
The Company will pay total finder's fees of $33,780 in cash, representing six per cent (6%) of the gross proceeds. The Company will also issue an aggregate of 168,000 broker warrants exercisable to purchase up to 168,000 Shares of the Company at a price of $0.35 per Share until January 13th, 2017. In accordance with the policies of the TSX Venture Exchange, the broker warrants are non-transferable. Common shares issued upon exercise of the broker warrants will also be subject to a hold period ending on May 13th, 2014.
Global Cobalt Corp. is a Canada-based strategic metals company focused on the development of a new mining region in the Republic of Altai. Global Cobalt will build upon the success of the Altai Projects while aggressively expanding and exploring existing properties to meet the demand for cobalt and other strategic metals.
For Further Information:
Mr. Mitchell Smith, Corporate Development
Suite 1510-1050 West Pender Street
Vancouver, BC V6E 3T4
Tel: +1 (604) 688-4219
Fax: +1 (604) 688-4215
Email: info@globalcobaltcorp.com
TSXV:GCO; FRA:3P0; CUSIP:37890F
Cautionary Statement on Forward-Looking Information: The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
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.
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