Canada Nickel Company Inc. Closes the First Tranche of "Bought Deal" Private Placement of $8 Million of Units /THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO
Canada Nickel Company Inc. Closes the First
Tranche of "Bought Deal" Private Placement of
$8 Million of Units
/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN
CANADA
ONLY AND IS NOT
INTENDED FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES./
TORONTO
,
Sept. 30, 2020
/CNW/ - Canada Nickel Company Inc. (TSXV: CNC) ("
Canada Nickel
"
or the "
Company
") is pleased to announce that it has closed the first tranche of its previously
announced brokered "bought deal" private placement financing and has issued an aggregate of
5,350,000 units of the Company (the "
Units
") at an offer price of
$1.50
per Unit (the "
Issue Price
")
for aggregate gross proceeds of
$8,025,000
(the "
Offering
"). The Company's second tranche of its
financing consisting of an aggregate of 2,950,000 common shares of the Company designated as
"flow-through shares" (the "
Flow-Through Shares
") at a price of
$1.70
per Flow-Through Share for
aggregate gross proceeds of
$5,015,000
(the "
Flow-Through Offering
") is scheduled to close on
or around
October 14, 2020
.
Each Unit consists of one common share of the Company and one-half of one common share
purchase warrant of the Company (each whole common share purchase warrant, a "
Warrant
").
Each Warrant entitles the holder thereof to acquire one common share of the Company at a price of
$2.10
per common share until
September 30, 2022
(the "
Expiry Date
"), subject to adjustment and
acceleration in certain events. In accordance with the terms of the Warrants, the Company can
trigger an accelerated expiry of the Warrants if the closing price of the Company's common shares
on the TSX Venture Exchange (the "
Exchange
") remains higher than
$3.25
for 20 consecutive
trading days (the "
Early Expiry Event
") to a date that is 30 trading days from the Early Expiry Event
pursuant to written notice given to the warrant agent and the holders of Warrants and pursuant to a
news release issued by the Company within two days of the Early Expiry Event specifying the
accelerated expiry date.
The Offering was led by Echelon Wealth Partners Inc. on behalf of a syndicate of underwriters that
included Eight Capital and Haywood Securities Inc. (together, the "
Underwriters
"). In consideration
for their services, the Company paid the Underwriters a cash commission of 6.0% of the gross
proceeds of the Offering and issued non-transferable compensation options (the "
Compensation
Options
") equal to 6.0% of the aggregate number of Units sold under the Offering. Each
Compensation Option is exercisable into one Unit at the Issue Price until
September 30, 2022
.
The net proceeds from the sale of the Units will be used to fund feasibility study work through 2021
on the Company's Crawford Nickel-Cobalt Sulphide Project, to accelerate exploration on the
Company's option properties, and for working capital purposes.
All securities issued under the Offering will be subject to a hold period expiring
January 31
,
2021. The Offering is subject to final acceptance of the Exchange.
The securities offered pursuant to the Offering have not been registered under the U.S. Securities
Act of 1933, as amended, and may not be offered or sold in
the United States
absent registration or
an applicable exemption from the registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any
State in which such offer, solicitation or sale would be unlawful.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the 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
, NetZero Iron
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, the use of the net proceeds of the Offering; the timing and ability of the Company, if at all,
to obtain final approval of the Offering from the Exchange; the completion of the Flow-Through
Offering; statements regarding exploration results and exploration plans; statements regarding
trade-mark applications and statements regarding the development of production processes.
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 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, 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.
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http://www.newswire.ca/en/releases/archive/September2020/30/c8418.html
%SEDAR: 00048733E
For further information:
Phone: 647-256-1954, email: [email protected]
CO: Canada Nickel Company Inc.
CNW 17:03e 30-SEP-20