OR Disemmination IN the
Canada Nickel Company Inc. Upsizes Private
Placement Financing
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISEMMINATION IN
THE
UNITED STATES
/
TORONTO
,
April 20, 2020
/CNW/ -
Canada Nickel Company Inc. ("Canada Nickel" or the
"Company") (TSX.V: CNC)
is pleased to announce that the unit component of the best efforts
private placement financing previously announced on
April 02, 2020
(the "Offering") is now
oversubscribed and as a result the syndicate of agents led by PI Financial Corp., which includes Red
Cloud Securities Inc. and Haywood Securities Inc., have exercised their agents' option and the
Company has upsized the Offering. The Offering will now consist of up to 1,642,890 units (the
"Units"), up to 5,000,000 flow-through common shares (the "FT Shares") and up to 4,113,900 flow-
through units (the "FT Units") of the Company to raise aggregate gross proceeds of up to
approximately
C$4.69 million
.
Canada Nickel CEO
Mark Selby
commented, "We are grateful for the support from existing
investors and welcome new investors who have recently become acquainted with the Canada Nickel
story. Demand for the private placement was higher than we expected which has led to today's
announcement of an increase in the total funds to be raised which will be used to continue to
advance our Crawford nickel-cobalt sulphide discovery."
Each of the Units, FT Shares and FT Units will be offered by way of a best efforts private placement
at a price of
C$0.35
per Unit,
C$0.40
per FT Share and
C$0.515
per FT Unit respectively. The
Agents are working with a charitable promoter in respect of the sale of the FT Units.
Each Unit will now consist of one common share in the capital of the Company and one-half of one
common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall entitle the
holder to acquire an additional common share at a price of
C$0.57
for a period of 30 months
following the closing of the Offering. The exercise of the Warrants shall be subject to the following
acceleration provision: if for any twenty (20) consecutive trading days the volume-weighted average
trading price of the Shares on the TSX Venture Exchange (the "Exchange") exceeds
C$0.85
at any
time after the Closing Date and until the expiry date of the Warrants, then the Company is entitled,
at its option, to accelerate the expiry date of the Warrants to a date that is not less than 30 days
from the date when such notice is given. The Issuer will notify warrant holders by way of press
release that the warrants have accelerated and provide new expiry dates in such press release. This
clause may not be used to extend the expiry date of the Warrants.
Each FT Unit will consist of one flow through common share in the capital of the Company and one-
half of one common share purchase warrant (each whole warrant, a "FT Warrant"). Each FT
Warrant shall have the same terms as the Warrant forming part of the Unit.
The net proceeds of the Offering will be used to fund advancement of the Company's Crawford
Nickel-Cobalt Sulphide Discovery and for working capital purposes. The closing of the Offering is
anticipated to occur on or around
May 5, 2020
(the "Closing Date") 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.
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 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 Regarding 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 timing of the closing of the Offering, the total amount raised under the Offering, the
potential of the Crawford Nickel-Cobalt Sulphide Project, 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, 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/April2020/20/c4479.html
%SEDAR: 00048733E
For further information:
Mark Selby, Chair and CEO, Phone: 647-256-1954, Email:
CO: Canada Nickel Company Inc.
CNW 09:41e 20-APR-20