Global Cobalt Corporation is a strategic metals company focused on the development of a new mining region in the Republic of Altai, Russia.
As first mover into this new region, Global Cobalt will be able to leverage the world-class Karakul Cobalt Project and bring on stream a number of projects creating a mining district with enormous potential.
The Republic of Altai is a mineral rich, pro-mining region of southern Siberia, Russia, which neighbours the similarly mineral-endowed countries of Kazakhstan, Mongolia and China.
Recognizing strategic metals, and more specifically cobalt, as essential to the world's ever growing need due to the increasing focus on environmental sustainability, the electrification of the modern vehicle and the escalating appetite for consumer electronics such as mobile phones, tablets and laptops, Global Cobalt's primary objective is to define economically feasible projects through the acquisition of tactical mineral assets while aggressively expanding and exploring existing properties to supply the growing demand for cobalt and other strategic metals.
Global Cobalt Corp. has entered into an agreement with Euro Pacific Canada Inc. as lead corporate financial and transaction adviser.
"The demand for strategic metals remains a priority globally, with cobalt in particular gaining more recognition for its criticality in the battery and electronics sector," says David Cusson, chief executive officer of Euro Pacific Canada. "Euro Pacific is supportive of the cobalt market and believe that Global Cobalt is the ideal company to fill this niche market, and are delighted to have been appointed as financial advisors for this prestigious company and project portfolio."
In its corporate transaction advisory role, Euro Pacific will assist and advise Global Cobalt with the identification and assessment of potential merger and asset acquisition, joint ventures, business combination opportunities, and the initiation of contact with candidates.
Euro Pacific will further assist in a corporate financial role by administering specific advice on various financing alternatives and recommendations with respect to institutional investors, including facilitating access to appropriate potential institutional investors for the company. They will also cater to the company by facilitating access to experienced analysts and capital markets staff with specialized industry knowledge and understanding.
In compensation for the advisory services, the company shall pay an advisory fee to the adviser equal to $50,000 paid in units, subject to TSX Venture Exchange approval. Each such unit will comprise one common share and one share purchase warrant, each such warrant entitling the holder to purchase an additional common share at an exercise price of 14 cents for a period of two years. Additionally, the corporation shall pay the adviser a cash fee of $15,000 per month for six months beginning July, 2013.
"Euro Pacific is the preferred gateway for our company's exposure to the capital markets. David Cusson and his team have extensive cross-border financial advisory experience, and the capability to support our projects with a continuum of financial services," says Erin Chutter, president and chief executive officer of Global Cobalt.
Global Cobalt is also pleased to announce that, through Euro Pacific's involvement, it has entered into a definitive securities purchase agreement with an individual investor to purchase 1,136,334 units of the company at a price of 11 cents per unit. Each unit consists of one common share and one common share purchase warrant struck at 14 cents for two years.
Upon closing, the transaction will result in gross proceeds to Global Cobalt of approximately $125,000, before deducting placement agent fees and offering expenses. Proceeds from the transaction will be used to finance the company's operations and working capital requirements.
"This financing is a critical milestone to ensure that we will continue to have funds in place to operate over the course of the next 12 months and to ensure the funds raised stay focused on the development of the Karakul project," said Ms. Chutter.
The individual will also be participation in a separate offering of 11 subscription rights. Each subscription right allows the holder the right to purchase up to $250,000 of units at 20 per cent below the 30-calendar-day volume-weighted average price that is not to exceed a 25-per-cent discount to previous day's close. Each subscription right unit will consist of one common share and one common share purchase warrant struck at the 20-day volume-weighted average price plus 20 per cent. The subscription rights will expire at a rate of one subscription right per month at the end of each month, starting 60 days from closing of the offering. Upon notice to the holder, the company may limit any individual subscription right to $125,000. Neither the subscription rights nor the warrants comprising the subscription right units can be exercised in the event that said exercise would put the holder over 9.9-per-cent ownership.
The company will pay a finder's fee, at the closing of the offering and subsequent subscription rights closings, subject to TSX-V acceptance, a fee consisting of a cash payment equal to 8 per cent of the gross proceeds raised from the offering, and transferable share purchase warrants of the company to the finder equal to 8 per cent of subscriptions in the offering and subsequent subscription rights closings from persons introduced to the company by the finder. Each unit comprises one common share of the capital of the corporation and one warrant on the same terms as the offering, or subscription rights.
In addition, the company will be offering an additional 1,136,334 units with other subscribers at a price of 11 cents per unit for additional gross proceeds of $125,000.
All securities issued in connection with the offering will be subject to a four-month hold period from the date of issuance in accordance with applicable securities law. The closing of each offering is subject to receipt of TSX-V approval.