Canada Nickel Company Inc. Closes the Second Tranche of "Bought Deal" Private Placement of $5 Million of Flow-Through Shares /THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO
Canada Nickel Company Inc. Closes the
Second Tranche of "Bought Deal" Private
Placement of $5 Million of Flow-Through
Shares
/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
,
Oct. 14, 2020
/CNW/ - Canada Nickel Company Inc. (TSX-V: CNC) ("
Canada Nickel
"
or the "
Company
") is pleased to announce that it has closed the second tranche of its previously
announced brokered "bought deal" private placement financing and has issued 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 "
Offering
").
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 Flow-Through Shares sold under the Offering.
Each Compensation Option is exercisable into 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
") at a price of
$1.50
per Compensation Option. Each Warrant entitles the
holder thereof to acquire one common share of the Company at a price of
$2.10
per common share
until
October 14, 2022
, subject to adjustment and acceleration in certain events.
The gross proceeds received by the Company from the sale of the Flow-Through Shares will be
used to incur Canadian Exploration Expenses that are "flow-through mining expenditures" (as such
terms are defined in the
Income Tax Act
(
Canada
)) on the Company's properties in
Ontario
, which
will be renounced to the subscribers with an effective date no later than
December 31, 2020
, in the
aggregate amount of not less than the total amount of the gross proceeds raised from the issue of
Flow-Through Shares.
All securities issued under the Offering will be subject to a hold period expiring
February 15
,
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 tax treatment of the Flow-Through
Shares; the timing of the tax renunciation to the subscribers; 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.
View original content:
http://www.newswire.ca/en/releases/archive/October2020/14/c1520.html
%SEDAR: 00048733E
For further information:
Mark Selby, Chair and CEO, Phone: 647-256-1954, Email:
CO: Canada Nickel Company Inc.
CNW 16:15e 14-OCT-20