Home > News > Canada Nickel Announces...

Canada Nickel Announces $10.0 Million “Bought Deal” Private Placement of Flow Through Shares

Jul 7, 2021

Canada Nickel Company Inc. has entered into an agreement with Cantor Fitzgerald Canada Corporation and Echelon Wealth Partners as joint bookrunners and lead underwriters on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase, on a "bought deal" private placement basis, flow-through common shares of the Company at a price of $4.10 per FT Share, for total gross proceeds of $10 million.

Mark Selby, Chair and CEO said, “This financing allows us to remain well-funded through the end of the year and provides significant financial flexibility as we drive our successful exploration program forward and advance our discussions with potential strategic partners.”

The net proceeds from the sale of the FT Shares will be used to fund the exploration program through 2021 on the Company's wholly-owned Crawford Nickel Sulphide Project.

The Offering is expected to close on or about July 27, 2021 or such other date as the Company and the Underwriters may agree upon, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities. The FT Shares to be issued under the Offering will be subject to a hold period in Canada expiring four months and one day from the closing date of the Offering. In connection with the Offering, the Underwriters will receive a cash commission of 6.0% of the gross proceeds of the Offering.

In addition, the Company has also granted the Underwriters an over-allotment option to purchase up to an additional 15% of the number of FT Shares sold. This over-allotment option is exercisable in whole or in part at any time up to 48 hours prior to the closing date of the Offering.

Tags: Northern Ontario / Deals & Financial / Battery Metals / All Articles