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 agreements to issue shares for debt settlements with certain creditors, three of whom are directors and/or officers of the company. In consideration for the settlement of a total combined debt of $52,365 owing to the creditors by the company, the company issued to the creditors 1,047,300 common shares of the company at a deemed price of five cents per share.
Erin Chutter, Global Cobalt's president and chief executive officer, commented: "This debt settlement is important for the company, as it continues the process of clearing the company's balance sheet of debt. Members of the company's board as well as officers of the company are participants in the shares for debt settlement, underscoring their confidence in the company's future. The company determined it was best to satisfy the outstanding debt owed to the creditors by the issuance of shares so as to preserve cash for operations, project advancement and the evaluation of potential acquisitions that can grow the company in the future."
The shares issued to the directors and/or officers of the company will be subject to a four-month hold period, and all shares issued in the service settlement will be in accordance with applicable securities law and will be subject to the prior approval of the TSX Venture Exchange.