VANCOUVER, Sept. 27, 2018 /PRNewswire/ - eCobalt Solutions Inc. ("eCobalt" or "the Company") (TSX: ECS) (OTCQX: ECSIF) (FRA: ECO) announces that Mr. Paul Farquharson will retire as President, Chief Executive Officer ("CEO") and Director of the Board on October 1, 2018, and will be succeeded by Mr. Michael Callahan as President, CEO and Director of the Board.
Mr. Callahan is a strong and experienced executive with extensive operational and public-company management experience having held senior management roles at numerous development and production stage mining companies. The addition of Mr. Callahan will further enhance eCobalt's execution of its strategic plan through his strong leadership, industry expertise, and proven operational background. Mr. Callahan has established and led numerous sizeable operations in North America and internationally. In addition, Mr. Callahan has been responsible for the evaluation and execution of several growth-oriented transactions throughout his career. Mr. Callahan's immediate focus will be on delivering the Optimized Feasibility Study ("OFS") and securing project financing to commence mine development of the Idaho Cobalt Project.
Mr. Callahan established his career with Hecla Mining Co. ("Hecla") (NYSE: HL) in 1989, holding increasingly senior roles, including Senior Financial Analyst, Director of Accounting & Information Services, and Vice President of Corporate Development. In 2000, after playing an instrumental role in the successful acquisition of the La Camorra Mine, he was appointed President of Hecla's Venezuelan mining operations where he oversaw all aspects of operations, successfully managed two gold operations with a 1,000 man workforce, and transformed the La Camorra mine from an unprofitable asset into the largest gold producer in Venezuela with significant cash flow. In 2002, Mr. Callahan assumed the role of Vice President Corporate Development for Hecla where he was responsible for evaluating acquisition opportunities worldwide. In 2006, Mr. Callahan was again made responsible for Hecla's Venezuelan assets as Vice President of Hecla and President of Venezuelan operations, developing a strategy to manage and divest the assets in the midst of an increasingly challenging environment.
From 2009 to 2012, Mr. Callahan served as President of Silvermex Resources Inc. ("Silvermex"), a TSX-listed silver and gold producer with projects in Mexico, until the company was acquired by First Majestic Silver Corp. in 2012. Mr. Callahan was instrumental in the success of the company, growing Silvermex in just over two years from a $12 million junior explorer with three employees to a gold and silver producer with a workforce of over 300 valued at $175 million at acquisition.
In 2013, Mr. Callahan became President of Western Pacific Resources Corp., a mineral exploration and development company focused on rehabilitating and exploring the Deer Trail Mine in Utah. Amidst challenging market conditions, he took over as CEO in 2014 overseeing restructuring activities, and resigned from that position in 2018 leading up to his appointment as President and CEO of eCobalt.
To ensure a smooth transition, Mr. Farquharson will work with the new CEO through the end of the year. Commenting on the appointment, Mr. Scott Hean, Chairman of eCobalt, stated: "On behalf of the Board of Directors I thank Paul for his more than 25 years of service to the Company. Through his contributions in corporate development, financing, and strategic acquisitions for eCobalt and its subsidiaries, Paul has been integral to the growth of eCobalt as the only near-term, environmentally permitted primary cobalt producer in the United States."
The addition of Mr. Callahan to eCobalt is the most recent in a series of talent acquisitions as the Company strengthens its production-ready team. "I am very excited to be joining this team of exceptional mining professionals," stated Michael Callahan. "I fully support the plan set forth by current management to bring the Idaho Cobalt Project into production, and look forward to facilitating its execution."
Following a thorough review of the model and projected economics by Mr. Callahan, results of the OFS will be issued in October 2018. Project financing discussions continue to advance, and samples of the clean cobalt concentrate generated from testing of ore from the Idaho Cobalt Project are being shipped to potential off-take partners.
"The appointment of Michael is an exciting milestone in a succession plan that the Board has been working on for the past several months," further added Mr. Hean. "This is a pivotal time for eCobalt as we continue to advance the Idaho Cobalt Project into production. A local to Idaho, Michael is a well-rounded executive with demonstrated expertise and leadership not only in operations, but also in finance, and marketing, as well as government, community and labour relations. Michael's extensive and successful experience in the sector makes him an ideal candidate to lead eCobalt through the next phase of execution of our strategic plan as we remain focused on creating long term value for all shareholders."
About eCobalt Solutions Inc.
eCobalt is a Toronto Stock Exchange listed company committed to providing clean cobalt products essential for the rapidly growing rechargeable battery and renewable energy sectors, made safely, responsibly, and transparently in the United States. The Company's Idaho Cobalt Project, located in East Central Idaho in the historic Idaho Cobalt Belt, is the only environmentally permitted, primary cobalt project in the United States. It is 100% owned by the Company's wholly owned subsidiary, Formation Capital Corporation, U.S.
Cautionary Statement on Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Statements in this news release pertaining metallurgical testwork, financing and construction activities are forward-looking statements. These forward-looking statements are based on assumptions and address future events and conditions and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are not guarantees of future results, performance or achievement. These risks, uncertainties and factors include general business, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; fluctuations in currency exchange rates; changes in project parameters; changes in costs, including labour, infrastructure, operating and production costs; future prices of cobalt; variations of mineral grade or recovery rates; operating or technical difficulties in connection with exploration, development or mining activities, including the failure of plant, equipment or processes to operate as anticipated; delays in completion of exploration, development or construction activities; changes in government legislation and regulation; the ability to maintain and renew existing licenses and permits or obtain required licenses and permits in a timely manner; the ability to obtain financing on acceptable terms in a timely manner; contests over title to properties; employee relations and shortages of skilled personnel and contractors; the speculative nature of, and the risks involved in, the exploration, development and mining business.
Such projections are and will inevitably always be dependent on assumptions about future mineral prices and development costs which will be subject to fluctuation due to global and local economic and industry conditions. Further information regarding risks and uncertainties which may cause results to differ from those contained in forward-looking statements is included in filings by the Company with securities regulatory authorities and is available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Although the Company has disclosed that the ICP remains the sole, near term, environmentally permitted, primary cobalt deposit in the United States and offers a unique potential for North American consumers to secure an ethically sourced, environmentally sound supply of clean cobalt products, there is no guarantee that the Company will attain commercial production of such cobalt products for use in the rechargeable battery sector. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.
The statements contained in this news release in regard to eCobalt that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including eCobalt's beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to eCobalt as of such date. It is important to note that actual outcome and the actual results could differ from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate, commodity price and marketplace changes.
SOURCE eCobalt Solutions Inc.