First Atlantic Nickel Closes $1M Charity Flow-Through Financing at $0.49 PER Share, Representing a 122% Premium with No Warrants
FIRST ATLANTIC NICKEL CLOSES $1M CHARITY FLOW-THROUGH FINANCING AT
$0.49 PER SHARE, REPRESENTING A 122% PREMIUM WITH NO WARRANTS
Vancouver, British Columbia – (GlobeNewsWire – April 10, 2025) -- First Atlantic Nickel Corp. (TSXV: FAN)
(OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the "Company") is pleased to announce that it has closed a
non-brokered private placement financing of 2,190,200 common shares of the Company issued on a charity
flow-through basis (the "Charity FT Shares") at a price of C$0.49 per Charity FT Share for gross proceeds of
C$1,073,198 (the "Offering").
First Atlantic realized gross proceeds of C$0.49 per Charity FT Share through a structured charity flow-through
financing, representing a premium to the C$0.32 effective purchase price paid by a back-end strategic investor.
This premium structure is made possible by the charity flow -through share mechanism under the Canadian
Income Tax Act, which allows eligible investors to renounce certain tax benefits in favour of a registered charity,
enabling the Company to raise capital at a premium to the market price.
In connection with this Offering, a strategic investor exercised its top- up rights under an Investor Rights
Agreement, which entitles it to maintain an ownership interest of up to 9.99%. No warrants were issued in
connection with the Offering, and no commi ssions or finder's fees were paid. The Company plans to use the
proceeds of the Offering for its Phase 2 drilling and exploration program at its Atlantic Nickel Project in Central
Newfoundland.
For further information, questions, or investor inquiries, please contact Rob Guzman at First Atlantic
Nickel by phone at +1-844-592-6337 or via email at [email protected].
Each Charity FT Share has been issued as a “flow-through share” under the Income Tax Act (Canada) (the “Tax
Act”). An amount equal to the gross proceeds from the issuance of the Charity FT Shares will be used to incur,
on the Company’s Canadian mineral exploration properties, eligible resource exploration expenses that will
qualify as (i) “Canadian exploration expenses” (as defined in the Tax Act), and (ii) “flow -through critical mineral
mining expenditures” (as defined in subsection 127(9) of the Tax Act) (collectively, the “ Qualifying
Expenditures”). The Qualifying Expenditures in an aggregate amount not less than the gross proceeds raised
from the issue of the Charity FT Shares will be incurred on or before December 31, 2026 and will be renounced
by the Company to the purchasers of the initial pur chasers of the Charity FT Shares with an effective date no
later than December 31, 2025. In the event that the Company is unable to renounce the issue price for the
Charity FT Shares on or prior to December 31, 2026 for each Charity FT Share purchased and/or if the Qualifying
Expenditures are reduced by the Canada Revenue Agency, the Company will as sole recourse for such failure
to renounce, indemnify each Charity FT Share subscriber for the additional taxes payable by such subscriber to
the extent permitted by the Tax Act as a result of the Company’s failure to renounce the Qualifying Expenditures
as agreed.
The Offering is subject to the final acceptance of the TSX Venture Exchange. All securities issued pursuant to
the Offering are subject to a statutory hold period of four months and one day, which will expire on August 11,
2025, in accordance with applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to sell 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.
The Company is also pleased to announce that it has renewed its investor relations agreement with Xander
Capital Partners Inc. (“Xander”) for an additional 12-month term commencing April 1, 2025. Xander will continue
to provide investor relations and market consulting services, including brand awareness initiatives and
introductions to strategic partners, advisors, and members of the investment community.
The renewal is on substantially the same terms as the original agreement dated April 1, 2024, including a monthly
fee of USD $10,000. The renewal remains subject to the approval of the TSX Venture Exchange.
Awaruite (Nickel-iron alloy Ni₂Fe, Ni₃Fe)
Awaruite, a naturally occurring sulfur-free nickel-iron alloy composed of Ni₃Fe or Ni₂Fe with approximately ~75%
nickel content, offers a proven and environmentally safe solution to enhance the resilience and security of North
America's domestic critical minerals supply chain. Unlike conventional nickel sources, awaruite can be processed
into high-grade concentrates exceeding 60% nickel content through magnetic processing and simple f loatation
without the need for smelting, roasting, or high- pressure acid leaching 1. Beginning in 2025, the US Inflation
Reduction Act's (IRA) $7,500 electric vehicle (EV) tax credit mandates that eligible clean vehicles must not
contain any critical minerals processed by foreign entities of concern (FEOC) 2. These entities include Russia
and China, which currently dominate the global nickel smelting industry. Awaruite's smelter -free processing
approach could potentially help North American electric vehicle manufacturers meet the IRA's stringent critical
mineral requirements and reduce dependence on FEOCs for nickel processing.
The U.S. Geological Survey (USGS) highlighted awaruite's potential, stating, "The development of awaruite
deposits in other parts of Canada may help alleviate any prolonged shortage of nickel concentrate. Awaruite, a
natural iron- nickel alloy, is much easi er to concentrate than pentlandite, the principal sulfide of nickel" 3.
Awaruite's unique properties enable cleaner and safer processing compared to conventional sulfide and laterite
nickel sources, which often involve smelting, roasting, or high-pressure acid leaching that can release toxic sulfur
dioxide, generate hazardous waste, and lead to acid mine drainage. Awaruite's simpler processing, facilitated
by its amenability to magnetic processing and lack of sulfur, eliminates these harmful methods, reducing
greenhouse gas emissions and risks associated with toxic chemical r elease, addressing concerns about the
large carbon footprint and toxic emissions linked to nickel refining.
1 https://fpxnickel.com/projects-overview/what-is-awaruite/
2 https://home.treasury.gov/news/press-releases/jy1939
3 https://d9-wret.s3.us-west-2.amazonaws.com/assets/palladium/production/mineral-pubs/nickel/mcs-2012-nicke.pdf
Figure 1: Quote from USGS on Awaruite Deposits in Canada
The development of awaruite resources is crucial, given China's control in the global nickel market. Chinese
companies refine and smelt 68% to 80% of the world's nickel4 and control an estimated 84% of Indonesia's nickel
output, the largest worldwide supply5. Awaruite is a cleaner source of nickel that reduces dependence on foreign
processing controlled by China, leading to a more secure and reliable supply for North America's stainless steel
and electric vehicle industries.
Investor Information
The Company's common shares trade on the TSX Venture Exchange under the symbol " FAN", the American
OTCQB Exchange under the symbol “ FANCF” and on several German exchanges, including Frankfurt and
Tradegate, under the symbol "P21".
Investors can get updates about First Atlantic by signing up to receive news via email and SMS text at
www.fanickel.com. Stay connected and learn more by following us on these social media platforms:
https://x.com/FirstAtlanticNi
https://www.facebook.com/firstatlanticnickel
https://www.linkedin.com/company/firstatlanticnickel/
4 https://www.brookings.edu/wp-content/uploads/2022/08/LTRC_ChinaSupplyChain.pdf
5 https://www.airuniversity.af.edu/JIPA/Display/Article/3703867/the-rise-of-great-mineral-powers/
FOR MORE INFORMATION:
First Atlantic Investor Relations
Robert Guzman
Tel: +1 844 592 6337
Disclosure
Adrian Smith, P.Geo., is a qualified person as defined by NI 43-101. The qualified person is a member in good
standing of the Professional Engineers and Geoscientists Newfoundland and Labrador (PEGNL) and is a
registered professional geoscientist (P.Geo.). Mr. Smith has reviewed and approved the technical information
disclosed herein.
About First Atlantic Nickel Corp.
First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) is a Canadian mineral exploration
company developing the 100% -owned Atlantic Nickel Project, a large -scale nickel project strategically located
near existing infrastructure in Newfoundland, Canada. The Project's nickel occurs as awaruite, a natural nickel-
iron alloy containing approximately 75% nickel with no- sulfur and no- sulfides. Awaruite's properties allow for
smelter-free magnetic separation and concentration, which could strengthen Nort h America's critical minerals
supply chain by reducing foreign dependence on nickel smelting. This aligns with new US Electric Vehicle US
IRA requirements, which stipulate that beginning in 2025, an eligible clean vehicle may not contain any critical
minerals processed by a FEOC (Foreign Entities Of Concern)6.
First Atlantic aims to be a key input of a secure and reliable North American critical minerals supply chain for the
stainless steel and electric vehicle industries in the USA and Canada. The company is positioned to meet the
growing demand for responsibly sourced nickel that complies with the critical mineral requirements for eligible
clean vehicles under the US IRA. With its commitment to responsible practices and experienced team, First
Atlantic is poised to contribute significantly to the nickel industr y's future, supporting the transition to a cleaner
energy landscape. This mission gained importance when the US added nickel to its critical minerals list in 2022,
recognizing it as a non-fuel mineral essential to economic and national security with a supply chain vulnerable
to disruption.
Neither the 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.
Forward-looking statements:
This news release may include "forward- looking information" under applicable Canadian securities legislation. Such
forward-looking information reflects management's current beliefs and are based on a number of estimates and/or
assumptions made by and information currently available to the Company that, while considered reasonable, are subject to
known and unknown risks, uncertainties, and other factors that may cause the actual results and f uture events to differ
materially from those expressed or implied by such forward- looking information. Forward looking information in this news
release includes, but is not limited to the use of proceeds from the Offering, expectations regarding the timing , scope, and
results from the Phase 1 work and drilling program; results from the Phase 2 work and drilling program, future project
developments, the Company’s objectives, goals or future plans, statements, and estimates of market conditions. Readers
are cautioned that such forward- looking information are neither promises nor guarantees and are subject to known and
unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social
uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of exploration
activities, environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays in
obtaining governmental approvals and permits, and other risks in the mining industry. Additional factors and risks including
various risk factors discussed in the Company’s disclosure documents which can be found under the Company’s profile on
http://www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying
6 https://home.treasury.gov/news/press-releases/jy1939
the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended,
planned, anticipated, believed, estimated or expected.
The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks,
requires substantial expenditures, and may not result in the discovery of mineral deposits that can be mined profitably.
Furthermore, the Company currently has no reserves on any of its properties. As a result, there can be no assurance that
such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from
those anticipated in such statements.