Canada Nickel Announces $1.5 Million Non- Brokered Private Placement, Extends the Accelerated Expiry Date of its Common Share
Canada Nickel Announces $1.5 Million Non-
Brokered Private Placement, Extends the
Accelerated Expiry Date of its Common Share
Purchase Warrants to September 14, 2020
TORONTO
,
Aug. 11, 2020
/CNW/ - Canada Nickel Company Inc. (TSXV: CNC) ("
Canada Nickel
" or
the "
Company
") announced today an offering (the "Offering") of up to 600,000 flow-through
common shares ("FT Shares") at a price of
$2.60
per FT Share, for total gross proceeds of
approximately
$1.5 million
. The FT Shares will be offered by way of a best efforts non-brokered
private placement to "accredited investors" resident in a Canadian jurisdiction.
The gross proceeds of the Offering will be used to fund advancement of the Company's nickel-cobalt
sulphide exploration activities through the incurrence of expenses that are eligible "Canadian
Exploration Expenses" which will also qualify as "flow-through mining expenditures" within the
meaning of s. 127(9) of the
Income Tax Act
(
Canada
), and will be eligible for the 5% Ontario
Focused Flow-Through Share Credit pursuant to the Ontario Taxation Act.
The closing of the Offering is anticipated to occur on or around
September 10, 2020
, and is subject
to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals,
including the acceptance of the TSX Venture Exchange. All securities issued under the Offering will
be subject to a statutory hold period in
Canada
expiring four months and one day from the closing
date.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities in
the United States
. The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within
the United States
or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an exemption from such
registration is available.
Extension to Accelerated Expiry Date applicable to Warrants
The Company also announced today that it is extending the Accelerated Expiry Date applicable with
respect to the common share purchase warrants (the "Warrants"), issued on
May 5, 2020
under the
warrant indenture (the "Warrant Indenture") between TSX Trust Company (the "Warrant Agent") and
the Company, from
August 21, 2020
to
September 14, 2020
(the "Accelerated Expiry Date") to
allow Warrant holders additional time to exercise their Warrants. The Company has delivered to the
Warrant Agent a notice of the occurrence of an Early Expiry Event (as defined in the Warrant
Indenture) and its election to extend the expiry date of the Warrants the Accelerated Expiry Date.
Mark Selby
, Chair and CEO of Canada Nickel, commented "We are making this change after
receiving several requests from some of our retail shareholders, particularly those who have
shares in registered accounts, to extend the original accelerated expiry date beyond the four-month
hold period of the underlying shares. We appreciate the support that all of our investors have
shown Canada Nickel since listing in
February 2020
and we are glad to be in a position to
accommodate this request. We are also pleased to announce this financing which will allow us to
aggressively pursue additional exploration targets once our in-fill drilling for the current resource is
completed this month."
Any Warrants that have not been exercised by
5:00 p.m.
(
Toronto
time) on the extended
Accelerated Expiry Date (
September 14, 2020
) will automatically expire and no longer be
exercisable. Warrant holders who have already exercised their Warrants need not take any
action.
Questions regarding this acceleration or the exercise of the Warrants should be directed to
the Company at
.
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.
About Canada Nickel Company
Canada Nickel Company Inc. is advancing the next generation of nickel-cobalt sulphide projects to
deliver nickel and cobalt required to feed the high growth electric vehicle and stainless steel markets.
Canada Nickel Company has applied in multiple jurisdictions to trademark the terms NetZero
Nickel
TM
, NetZero Cobalt
TM
, NetZeroIron
TM
and is pursuing the development of processes to allow
the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel provides investors
with leverage to nickel and cobalt in low political risk jurisdictions. Canada Nickel is currently
anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the
prolific
Timmins
-
Cochrane
mining camp.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain information that may constitute "forward-looking information"
under applicable Canadian securities legislation. Forward looking information includes, but is not
limited to, timing of the completion and size of the Offering, drill results relating to the Crawford
Nickel-Cobalt Sulphide Project, the potential of the Crawford Nickel-Cobalt Sulphide Project, timing
of economic studies and resource estimates, strategic plans, including future exploration and
development results, and corporate and technical objectives. Forward-looking information is
necessarily based upon a number of assumptions that, while considered reasonable, are subject to
known and unknown risks, uncertainties, and other factors which may cause the actual results and
future events to differ materially from those expressed or implied by such forward-looking
information. Factors that could affect the outcome include, among others: future prices and the
supply of metals, the future demand for metals, the results of drilling, inability to raise the money
necessary to incur the expenditures required to retain and advance the property, environmental
liabilities (known and unknown), general business, economic, competitive, political and social
uncertainties, results of exploration programs, timing of the updated resource estimate, risks of the
mining industry, delays in obtaining governmental approvals, and failure to obtain regulatory or
shareholder approvals. There can be no assurance that such information will prove to be accurate,
as actual results and future events could differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on forward-looking information. All forward-
looking information contained in this press release is given as of the date hereof and is based upon
the opinions and estimates of management and information available to management as at the date
hereof. Canada Nickel disclaims any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events or otherwise, except as required
by law.
SOURCE
Canada Nickel Company Inc.
View original content:
http://www.newswire.ca/en/releases/archive/August2020/11/c8267.html
%SEDAR: 00048733E
For further information:
Mark Selby, Chair and CEO, Phone: 647-256-1954, Email:
CO: Canada Nickel Company Inc.
CNW 08:31e 11-AUG-20