US Cobalt Inc. (USCFF)

[unit36]

US Cobalt Announces $5 Million Bought Private Placement

http://uscobaltinc.com/us-cobalt-announces-5-million-bought-private-placement/

VANCOUVER, BRITISH COLUMBIA, October 19, 2017 – US Cobalt Inc. (“US Cobalt” or the “Company”) (TSXV: USCO) (FRANKFURT: 26X) (OTCQB: SCTFF) is pleased to announce that it has entered into a letter of engagement with Eight Capital, under which Eight Capital has agreed to purchase 9,433,963 units of the Company (the “Units”), on a “bought deal” private placement basis, subject to all required regulatory approvals, at a price per Unit of $0.53 (the “Offering Price”), for total gross proceeds of approximately $5,000,000 (the “Offering”). Each Unit shall consist of one common share of the Company (a “Share”) and one-half of one common share purchase warrant (a “Warrant”). Each Warrant shall entitle the holder thereof to acquire one Share at a price of $0.75 for a period of 18 months following the Closing Date.

Fort Capital Partners is acting as financial advisor to the Company in connection with the Offering.

The Company has granted Eight Capital an over-allotment option to purchase up to an additional 1,415,095 Units at the Offering Price, exercisable in whole or in part, at any time on or prior to 48 hours prior to the closing of the Offering. If this option is exercised in full, an additional $750,000 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be up to approximately $5,750,000.

The Company intends to use the net proceeds of the Offering for exploration and development of cobalt deposits and for working capital and general corporate purposes.

The closing date of the Offering is scheduled to be on or about November 8, 2017 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.

As consideration for its services, Eight Capital (along with any additional underwriters included in a syndicate of underwriters in connection with the Offering) will receive a cash commission equal to 6% of the gross proceeds of the Offering. The Company will also issue to Eight Capital (along with any additional underwriters) compensation warrants in an amount equal to 4.5% of the number of Units sold pursuant to the Offering. Each compensation warrant will exercisable to purchase one Share at an exercise price of $0.60, for a period of 18 months.