TORONTO, June 1, 2018 /CNW/ - First Cobalt Corp. (TSX-V:
FCC; ASX: FCC; OTCQX: FTSSF) ("First Cobalt") and US Cobalt Inc.
(TSX-V: USCO, OTCQB: USCFF) ("US Cobalt") are pleased to announce
that the Committee on Foreign Investment in the United States ("CFIUS") has completed its
review of the previously announced proposed acquisition of US
Cobalt by First Cobalt and has concluded that there are no
unresolved national security concerns with respect to the
transaction.
Under the plan of arrangement transaction announced March 14, 2018, First Cobalt will acquire all of
the issued and outstanding shares of US Cobalt. US Cobalt owns the
Iron Creek Cobalt Project, located in the Idaho Cobalt Belt and has
a 1.3M ton historical resource
estimate (non-compliant with NI 43-101) grading 0.59% cobalt.
It is anticipated that the transaction will be completed before
the opening of markets on June 4, 2018.
About US Cobalt
US Cobalt is focused on the acquisition and development of high
grade battery metal deposits in North
America. The Iron Creek Cobalt Project, located in the
prolific Idaho Cobalt Belt, is the focus of a 40-hole, 35,000 foot
(10,700 metre) drill campaign to confirm a 1.3M ton grading 0.59% cobalt historical estimate
(non-compliant with NI 43-101) and a Resource Estimate prepared in
accordance with NI 43-101 is expected on the project in 2018.
About First Cobalt
First Cobalt aims to create the largest pure-play cobalt
exploration and development company in the world. The Company
controls more than 10,000 hectares of prospective land covering
over 50 historic mines as well as mineral processing facilities in
the Cobalt Camp in Ontario,
Canada. The First Cobalt Refinery is the only permitted
facility in North America capable
of producing cobalt battery materials. First Cobalt seeks to build
shareholder value through new discovery, mineral processing and
growth opportunities, with a focus on North America.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
On behalf of US Cobalt Inc.
Wayne Tisdale
President
Neither TSX Venture Exchange nor its Regulation 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 Note Regarding Forward-Looking
Statements
This news release may contain forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects", "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "will", "may", "could", "would", "might", "occur"
or "be achieved". Forward-looking statements involve risks,
uncertainties and other factors that could cause actual results,
performance and opportunities to differ materially from those
implied by such forward-looking statements. In particular,
forward-looking information included in this news release includes,
without limitation, statements regarding the completion of the
transaction. Factors that could cause actual results to differ
materially from these forward-looking statements are set forth in
the management discussion and analysis and other disclosures of
risk factors for each of First Cobalt and US Cobalt, filed on SEDAR
at www.sedar.com. Although First Cobalt and US Cobalt believe that
the information and assumptions used in preparing the
forward-looking statements are reasonable, undue reliance should
not be placed on these statements, which only apply as of the date
of this news release, and no assurance can be given that such
events will occur in the disclosed times frames or at all. Except
where required by applicable law, First Cobalt and US Cobalt
disclaim any intention or obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Historic Estimates
US Cobalt considers the cobalt and copper tonnage and grade
estimates above as historical estimates. The historical estimates
do not use categories that conform to current CIM Definition
Standards on Mineral Resources and Mineral Reserves as outlined in
National Instrument 43-101, Standards of Disclosure for Mineral
Projects ("NI 43-101") and have not been redefined to conform to
current CIM Definition Standards. They were prepared in the 1980s
prior to the adoption and implementation of NI 43-101. A qualified
person has not done sufficient work to classify the historical
estimates as current mineral resources and US Cobalt is not
treating the historical estimates as current mineral resources.
More work, including, but not limited to, drilling, will be
required to conform the estimates to current CIM Definition
Standards. Investors are cautioned that the historical estimates do
not mean or imply that economic deposits exist on the Iron Creek
property. US Cobalt has not undertaken any independent
investigation of the historical estimates nor has it independently
analyzed the results of the previous exploration work in order to
verify the accuracy of the information. US Cobalt believes that the
historical estimates are relevant to continuing exploration on the
Iron Creek property.
SOURCE First Cobalt Corp.