Green Swan Capital to complete private placement and flow through financing
Green Swan Capital Corp. (TSXV: GSW) is a resource exploration company, with assets located in Ontario and British Columbia. The company’s key focus is to target cobalt in Ontario through its recent acquisition of Copper Prince.
Copper Prince is a block comprising of sixteen contiguous mining claims. Exploration has been carried out on the deposit since the late 1880’s and prior to Green Swan acquiring the asset, two NI 43-101 reports were filed by third parties.
Green Swan’s subsequently produced its own assays on the deposit based on rock grab samples from the 1950’s, confirming that the deposit contained 4.5% cobalt and 15g/t gold.
Based on the quality of cobalt, the company is intent on pursuing development of the property as cobalt demand in lithium batteries is due to expand. Furthermore, regulations surrounding the cobalt supply chain with respect to blood minerals is becoming increasingly onerous and end users are therefore seeking cobalt supply outside of the Democratic Republic of Congo ( See article on cobalt in North America).
Following the positive feedback from the assay results, received in June this year, the Company carried out further exploration at Copper Prince with specific focus on the cobalt indicators. In addition, Green Swan has four additional claims in the area, totaling 176 hectares, three of which are contiguous to Copper Prince. The drill programme is due to commence in mid November.
On the 2nd of November, the Company successfully completed a non-brokered private placement of 3.3m common units and up to 416,667 flow through units at $0.09/common unit and $0.12/flow through unit, for gross proceeds of $350,000.
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In addition, Green Swan announced that, subject to regulatory approval, two arm’s length creditors agreed to convert $30,473.25 of debt into common units resulting in the issuance of 338,592 common units.
The net proceeds from the equity financing will be used for working capital and exploration activities on Green Swan’s cobalt/gold property.
The company’s share price closed at C$0.08 on the 8th of November. This compares to C$0.065 on the 7th of October.
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