VANCOUVER, British Columbia, Oct. 01, 2018 (GLOBE NEWSWIRE) -- Bankers Cobalt Corp. (TSXV: BANC; FSE: BC2; OTCQB: NDENF) (the “Corporation” or “Bankers”) is pleased to announce that it has entered into a loan agreement (the “Loan Agreement”) with Cesare Fazari (the “Lender”) pursuant to which an aggregate of US$100,000 (the "Loan") was made available to the Company August 7, 2018. The Company intends to use the proceeds from the Loan for general working capital purposes.
The Loan Agreement provides that any outstanding balance of the principal amount of the Loan and the interest owing is due and payable twelve months from the date of the Loan Agreement. Interest is payable on the outstanding balance of the principal amount of the Loan at the rate of 10% per annum.
As consideration for providing the Loan, the Company has agreed to issue 371,000 common shares (the “Bonus Shares”) to the Lender at a deemed price of $0.07 per Bonus Share. All Bonus Shares will be subject to a four month hold period from the date of issuance in accordance with applicable securities law. The Loan Agreement and the issuance of the Bonus Shares are subject to the acceptance of the TSX Venture Exchange.
The Loan Agreement constitutes a "related party transactions" under Multilateral Instrument 61- 101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") as the Lender is a Director of the Company. The related party transactions are exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to subsection 5.5(a) of MI 61-101, and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to subsection 5.7(1)(a) of MI 61-101, as the fair market value of the transactions contemplated under the Loan Agreement do not exceed 25% of the Company's market capitalization. A material change report as contemplated by the related party transaction requirements under MI 61-101 was not filed more than 21 days prior to closing of the transactions as the Loan was required shortly after the terms of the Loan were finalized for short term cash requirements.
About Bankers
Bankers is a natural resource company with a primary focus on the acquisition, exploration and development of cobalt and copper mineral properties in the DRC to world-class Canadian standards. Bankers has acquired an option on a 135 km² license in Namibia with the potential for copper, cobalt and other metals. As battery production for EV’s surges, demand for cobalt will probably exceed supply for many years. According to a recent report by Transparency Market Research, global sales of lithium-ion batteries are expected to reach US$70B by 2024, for a compound growth rate of 11.6% over the years beginning in 2016. Bankers holds rights to 26 separate mineral concessions strategically located in the southern DRC Copperbelt and having a total area of more than 391 km². Bankers has the intention to acquire interests in additional concessions. All concessions were obtained as either new grants or through reputable DRC partners and have clean title with no government involvement, making Bankers one of the few, and perhaps only, junior public mining company in the DRC to have 26 concessions capable of being currently explored. Bankers has an experienced operations team operating in the southern CopperBelt. Bankers believes it is the front runner in advancing cobalt and copper exploration by a junior mining company in the DRC.
ON BEHALF OF THE BOARD OF BANKERS COBALT CORP.
“Stephen Barley”
Chairman & CEO
| For further information: |
| Phone: 604.684.6730 |
| Email: info@bankerscobalt.com |
| Website: www.bankerscobalt.com |
Reader Advisory
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.
This news release contains “forward-looking information” within the meaning of applicable securities laws including statements relating to the Loan Agreement, the Loan Bonus Shares, regulatory approvals required in connection with Loan Agreement, the Loan, and Bonus Shares, the outlook of the business of the Corporation, the Corporation’s intention to acquire additional concession, the Corporation’s ability to explore and develop the concessions, the results of any development and exploration, the ability of the Corporation to meet standards for verifiable supply chain custody, and the Corporation’s status as a leader in the junior mining sector for cobalt and copper in the DRC. Although the Corporation believes considering the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them as the Corporation can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. The statements in this news release are made as of the date of this release. The Corporation undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Corporation its securities, or its financial or operating results.