Canada Nickel Announces Filing of Preliminary Prospectus and Provides Corporate Update
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Canada Nickel Announces Filing of Preliminary Prospectus and Provides Corporate
Update
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES
TORONTO, February 17, 2023 – Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV:
CNC) (OTCQX: CNIKF) is pleased to announce that it has filed and been receipted for a preliminary short
form prospectus in connection with its bought deal offering of (i) 7,462,500 common shares in the capital
of the Company (the “Common Shares”) at a price of $1.77 per Common Share and (ii) 1,748,300 common
shares issued as "flow-through shares" (the "Flow-Through Shares") within the meaning of the Income Tax
Act (Canada) at a price of $2.86 per Flow-Through Share, for aggregate gross proceeds to the Company of
$18,208,763 (the “Offering”), as further described in the news release of the Company dated February 8,
2023. In connection with the Offering, the Co mpany has entered into an underwriting agreement with
Scotia Capital Inc. Inc., as lead underwriter and sole bookrunner, together with a syndicate of underwriters
including Red Cloud Securities Inc., Cormark Securities Inc., Echelon Wealth Partners Inc., H aywood
Securities Inc., and Research Capital Corporation.
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary
regulatory and other approvals including the approval of the TSX Venture Exchange and the se curities
regulatory authorities.
The securities offered in the Offering 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 U.S. state securities laws, and may
not be offered or sold in the United States or to, or for the account or benefit of, United States persons
absent registration or any applicable exemption from the registration requirements of the U.S. Securities
Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities
in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Corporate Update
The Company has adopted a new stock option plan (the "Stock Option Plan") and restricted share unit
plan (the "RSU Plan", together with the Stock Option Plan, the "New Incentive Plans") which will replace
the Company’s current option plan and RSU plan. The number of common shares of the Company
reserved for issuance under the New Incentive Plans, collectively, cannot exceed 10% of the number of
common shares of the Company that are outstanding on each applicable grant date. Each of the Stock
Option Plan and RSU Plan are subject to approval by the shareholders of the Company at the meeting to
be held on April 6, 2023 (the "Meeting") and final TSXV approval.
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The Company has granted its executives, employees and directors a total of: (i) 1,890,000 stock options,
issued at an exercise price of $1.78 per share, vesting over a three -year period and expiring five years
from the date of the grant, and (ii) 1,563,449 restricted share units, vesting after a one -year period. The
portion of such grants made under the New Incentive Plans are subject to approval by the shareholders
at the Meeting.
In addition, the Company has entered into a property option agreement with a group of vendors under
which the Company has ac quired an option to earn a 100% interest in 170 single cell mining claims and
23 boundary cell mining claims located in the Timmins area. The agreement provides for certain annual
expenditure commitments by the Company, the issuance by the Company of up to a total of 100,000
common shares, and the payment to the vendors of a total of $90,000 over the option term to exercise
the option. The vendors will retain a 2.00% NSR with a 1.00% buy-back provision to the Company for $1.0
million. The completion of the transaction is subject to customary closing conditions, including the
approval of the TSX Venture Exchange. The common shares issued and issuable to the vendors will be
subject to a four month hold period under applicable Canadian securities laws.
About Canada Nickel
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 successfully registered and applied for trademarks in various jurisdictions for NetZero
Nickel™, NetZero Cobalt™ and NetZero Iron™ and is pursuing the development of processes to allow the
production of net zero carbon nickel, cobalt, and iron products. Canada N ickel 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. For more information, please visit www.canadanickel.com.
For further information, please contact:
Mark Selby,
Chair and CEO
Phone: 647-
256-1954
Email: [email protected]
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, drill results relating to the Crawford Nickel S ulphide Property, the potential of the Crawford Nickel
Sulphide Property, timing of economic studies and mineral resource estimates, the ability to sell
marketable materials, 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 f uture events to differ materially from those
expressed or implied by such forward -looking information. Factors that could affect the outcome
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include, among others: future prices and the supply of metals, the future demand for metals, the results
of drillin g, 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 explorat ion programs, risks of the mining
industry, delays in obtaining governmental approvals, failure to obtain regulatory or shareholder
approvals, and the impact of COVID -19 related disruptions in relation to the Company's business
operations including upon it s employees, suppliers, facilities and other stakeholders. 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, reade rs 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 manage ment 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.