Green Swan Capital Corp. Closes on Sudbury Basin Cobalt Asset and Announces Financings
June 14, 2016 (Source) — Green Swan Capital Corp. (TSXV: GSW) (“Green Swan”) announces that it has closed the previously announced 100% acquisition of the Copper Prince property in Falconbridge Township in the Sudbury Mining Division, Ontario.
Green Swan intends to focus its exploration efforts on the historic cobalt indicators.
Copper Prince is a block of 16 contiguous patented mining claims (260 hectares) in the Sudbury Basin, an area renowned for its world-class polymetallic sulphide ore deposits. They lie within the Huronian Gold Belt, a prolific zone of past gold producers that extends a distance of roughly 120 kilometers. Mining infrastructure, labour and knowledge are easily accessible in this mining-friendly jurisdiction.
Exploration work on Copper Prince has been carried out by various parties since the late 1880’s. Some historic data cannot be found. Green Swan has found two prior NI 43-101 reports on Copper Prince prepared for third parties and filed at SEDAR, which reports summarize the historic work carried out and some of the recent results obtained. These results have not been verified by Green Swan’s Qualified Person.
A notable cobaltite-in-quartz zone is described in the September, 2008 technical report as being found in the southeast claims comprising a 30-40cm wide quartz vein on the contact of the Nipissing Diabase with coarse grained cobaltite.
One historic sample from Copper Prince, number A195883, assay by Bell White Laboratories in Haileybury, ON (October 1991), returned 3.26% Cobalt, with 14 g/t Gold. A second sample, number A195885 assayed 2.62% Cobalt (Co) and 0.88% Nickel (Ni). Both samples had traces of copper, silver and PGE. Only the assay results were verified to the original Bell-White Certificate, but not the sampling method, location, delivery nor procedures of the person who collected these samples.
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Green Swan is awaiting assay results from samples taken during its late May, 2016 technical due diligence review. These results will be disclosed as soon as possible. Apart from those samples and a review of the historic record, Green Swan has done no work on Copper Prince.
“Our team has been actively searching for a Canadian cobalt property for almost a year, as we believe there will soon be a global cobalt shortage,” said Peter M. Clausi, Green Swan’s CEO. “Cobalt is needed to create lithium ion batteries for handheld devices, power tools, laptops, and electric vehicles. It is estimated that each Model 3 to be sold by Tesla Motors will consume 15 kg of cobalt. Tesla intends to sell 500,000 Model 3’s by 2018, which results in 7,500,000 kg of additional cobalt demand driven only by the Model 3. Combining overall growth in the battery market with falling cobalt production out of the Democratic Republic of Congo should lead to a significant supply gap.”
To fund the first round of exploration on Copper Prince, Green Swan announces its intention to effect a flowthrough financing in an amount up to $100,000 by offering up to 1,052,632 Flowthrough Units priced at $0.095 (nine point five cents) per Unit. Each Flowthrough Unit will comprise of one flowthrough share and one full 12-cent warrant with a 12-month term. Green Swan also announces its intention to carry out a hard dollar financing in an amount up to $100,000 by offering up to 1,250,000 Common Units priced at $0.08 (eight cents) per Common Unit. Each Common Unit will comprise of one common share and one full 12-cent warrant with a 12-month term. Both financings are subject to regulatory approval.
Green Swan also announces it has closed on the previously announced $50,000 equity financing and $30,000 loan (see the May 24, 2016 press release for details), and that the debenture financing announced April 25, 2016 will not proceed.
Green Swan also announces it will no longer pursue the marijuana or the real estate industry. Despite over two years of searching and the due diligence review of hundreds of opportunities in these areas, Green Swan could find no viable opportunity that justified risking the shareholders’ equity. With respect to the marijuana industry, the legislative risk was too great to overcome.
Risk associated with the Copper Prince acquisition include those common to mining exploration in Ontario, in addition to commodity pricing, management and board quality, execution and the ability to raise such capital as may be needed to fund the business plan.
Green Swan’s website http://www.greenswancapital.com is under construction and will soon be re-launched to include the historic NI 43-101 documents referred to above, and data related to the pending global cobalt shortage.
Scot Halladay, P.Geo. is the qualified person for this release and has approved its contents.
About Green Swan Capital Corp.
Green Swan Capital Corp. is a Canadian company with only 32,971,179 shares outstanding, an aggressive growth strategy and a proven leadership team. Green Swan is well-poised to deliver real value to its shareholders.
Forward Looking Statements
This news release may include statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Green Swan cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Future events and results may vary substantially from what Green Swan currently foresees. Discussion of the various factors that may affect future results is contained in Green Swan’s recent filings, available on SEDAR. Green Swan assumes no liability for repeating or referring to any facts, statements, releases, data or reports disseminated by any other issuer. Any reference to any other issuer should be cross-checked for accuracy and context by the reader. Neither the 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.
On Behalf of the Board of Directors
Green Swan Capital Corp.
“Peter M. Clausi”
Peter M. Clausi
President, CEO and Director
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.
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