VANCOUVER, Aug. 31, 2017 /CNW/ - Cobalt Power Group Inc. (the "Company") (TSX.V: CPO, OTC Pink: CBBWF) is pleased to announce that it has closed the private placement announced on August 21, 2017 as a result of which CPO has issued 4,886,538 units of CPO at a price of CDN$0.13 per unit to Hochschild Mining Holdings Limited ("Hochschild"). Each unit consists of one common share and one half of one non-transferrable share purchase warrant, with each one warrant being exercisable to purchase one additional common share of CPO over a period of two years from closing at a price of CDN$0.30 per share.
The common shares forming part of the unit and any shares that might be acquired on the exercise of warrants attached to the unit have been or will be issued subject to a four month hold period expiring December 26, 2017.
By virtue of the private placement Hochschild has received the following additional rights:
- the right to option and joint venture one of CPO's properties to be selected by Hochschild in its sole discretion on the terms set out in CPO's news release of August 21, 2017.
- the right to appoint a director to the Board of CPO following the closing and as long as Hochschild holds a minimum of 5% of the issued and outstanding shares of CPO; and
- the right to top up its shareholder holdings in CPO in order to maintain its percentage interest in the outstanding share capital of CPO. The exercise of the top up right is optional and may be exercised through further private placements to be made at a price equal to the average 20 day volume weighted market price of CPO's common shares as traded on the TSX Venture Exchange subject to the application of the minimum pricing policies of the TSX Venture Exchange.
The placement was closed after receipt of TSX Venture Exchange conditional approval.
About Hochschild Mining Holdings Limited
Hochschild Mining Holdings Limited is a wholly owned subsidiary of Hochschild Mining plc- both English companies. Hochschild Mining plc is based in Lima, Peru and currently trades on the London Stock Exchange. Hochschild is a well-established senior mining company with over 60 years operating experience in the Americas. It currently operates four underground mines focused on the production of precious metals, of which three are located in Peru and one in Argentina.
About Cobalt Power Group Inc.
Cobalt Power Group Inc. is a publicly traded Canadian exploration company listed on the TSX-Venture Exchange and U.S. Pink Sheets (TSX-V: CPO, OTC Pink: CBBWF) focused on cobalt exploration and development.
The Company has made a series of strategic property acquisitions over the past year, seeking cobalt mineralization near Cobalt, Ontario - a region with a long history of silver and associated cobalt production. Property holdings total 863.6 hectares (2134 acres) in contiguous and strategic claim blocks. There are several historic mining operations on the properties that are potentially accessible, including the Smith Cobalt shaft and its underground workings.
Chris M. Healey, P. Geo, a Director of Cobalt Power Group is the qualified person responsible for the technical content of this release, and consents to its dissemination.
