Global Cobalt Corp. Announces Shares for Debt Settlement
Vancouver, British Columbia--(Newsfile Corp. - August 30, 2013) - GLOBAL COBALT CORP. (TSXV: GCO) ("Global Cobalt") (the "Company") announces that consultants (the "Consultants") of the Company have agreed to accept shares in lieu of cash for the repayment of a combined total of $117,170 of services (the "Services") owed to them. The Consultants will receive a combined total of 1,171,700 common shares of the Company at a deemed price of $0.10 per share as payment of the Services (the "Service Settlement").
Dr. Michael Hitch, COO will receive 650,000 common shares of the Company. As an Officer of the Company, the securities issuable to Dr. Hitch will be subject to a four-month hold period from the date of issuance in accordance with applicable securities law, and will be subject to the prior approval of the TSXV.
Peter Reynolds will receive 108,700 common shares of the Company. As a newly appointed Director of the Company, the securities issuable to Mr. Reynolds will be subject to a four-month hold period from the date of issuance in accordance with applicable securities law, and will be subject to the prior approval of the TSXV.
CoMo Investment Solutions (Mitchell Smith), Corporate Development consultant to the Company, will receive 413,000 freely traded common shares of the Company. The shares issued in the Service Settlement will be subject to the prior approval of the TSXV.
All of the common shares to be issued in connection with the Service Settlement are being issued to preserve cash committed to project development and working capital.
The Company also wishes to announce a subscription for units offering, pursuant to the terms and conditions disclosed in the Company's news release dated July 8th, 2013, for approximately 2,450,980 units at a price of $0.051 per unit ("Unit") for aggregate gross proceeds of approximately $125,000 (the "Offering").
Each Unit consists of one common share ("Share") and one Share purchase warrant ("Warrant") of the Company. Each Warrant will entitle the holder to acquire one Share (a "Warrant Share") of the Company at a price of $0.073 per Warrant Share until two years after the date of closing. The Company will use the proceeds of the Offering towards its existing operations and for working capital.
Further to the Company's news release dated July 30th, 2013, the Company will not be proceeding with the second and final tranche of the private placement announced on July 8th, 2013.
Global Cobalt Corporation:
Global Cobalt Corporation is a Canada-based strategic metals company focused on the development of a new mining region in the Republic of Altai. Global Cobalt will build upon the success of the Altai Projects while aggressively expanding and exploring existing properties to meet the demand for cobalt and other strategic metals.
For Further Information:
Mr. Mitchell Smith, Corporate Development
Suite 1510-1050 West Pender Street
Vancouver, BC V6E 3T4
Tel: +1 (604) 688-4219
Fax: +1 (604) 688-4215
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.