Bankers Cobalt Corp. [BANC-TSXV; BC2-FSE] said Friday May 4 that it intends to complete a non-brokered private placement of up to 50 million units at 12 cents per unit for aggregate proceeds of u to $6 million. Each until will consist of one common share of the company and one-half of a share purchase warrant.
Each whole warrant will be exercisable into one share at an exercise price of 40 cents per share for two years from the date of issuance. However, the company said it may accelerate the expiry date if the shares trade above 50 cents for 20 consecutive trading days at any time after the financing closes.
Proceeds of the financing will be used to fund exploration and development of the company’s mineral concessions in the Democratic Republic of Congo, the acquisition of additional mineral concessions and for general working capital purposes.
On Friday, Bankers shares eased 12.5% or $0.02 to 14 cents, on volume of 1.35 million. Bankers was one of the most actively traded stocks on the TSX Venture Exchange. The shares are trading in a 52-week range of 11 cents and 85 cents.
Bankers Cobalt is a cobalt and copper exploration and development company focused on advancing a portfolio of permitted concessions in the Democratic Republic of Congo (DRC). The company holds rights to 26 separate mineral concessions strategically located in the southern DRC Copperbelt, covering a total area of 391 km2.
The DRC is the source of roughly 54% of the world’s cobalt production.
The company’s aim is to generate a reliable, certified supply of non-conflict copper-cobalt for existing and new processors in the DRC, which have excess capacity but a lack of available certified resources to meet burgeoning market demands.
Recently, the company said it has discovered elevated cobalt and copper in soil sampling at the Kabolela South Project.
Bankers Cobalt President and CEO Stephen Barley said Kabolela North, Hole KADD013 returned 3.69% copper over 6 metres from a depth of 72 to 78 metres, extending the zone originally discovered in Hole KADDO11 (3.17% copper over 4 metres from 28 metres) and hole KADD012 (2.01% copper over 6 metres from 34 metres; including 1 metre of 0.3% cobalt from 39 metres).
Barley said rock chip and soil sampling at Kabolela South has now shown encouraging elevated cobalt and copper results tracking the same stratigraphy as a former operating pit on the southern border of the Kabolela property.
“The exploration efforts at Kabolela continue to increase the potential for this project. Updates on activities at our Kankutu (Kimpe) and Comipad-Comima (292) projects will be released shortly.” Barley said.