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Canada Nickel closes private placement for Crawford exploration

Sep 11, 2020

Canada Nickel Company has raised more money for its nickel-cobalt play near Timmins. The company has closed its previously announced non-brokered private placement financing for aggregate gross proceeds of $1,774,500. 682,500 flow-through common shares of the company were issued for $2.60 per FT Share. The shares qualify as "flow-through share" as defined in subsection 66(15) of the Income Tax Act (Canada) (the "Tax Act").

Mark Selby, Chair & CEO of Canada Nickel commented “With the completion of this financing, which was upsized from $1.5 million due to strong market demand, in conjunction with the early warrant exercises by September 14th, Canada Nickel is well positioned to continue our regional exploration program currently underway and complete the PEA on the Crawford Nickel-Cobalt sulphide project by year end. We appreciate the support from our existing investors and welcome a number of new investors to Canada Nickel.

The gross proceeds from the sale of the FT Shares will be used to incur "Canadian exploration expenses" that qualify as "flow-through mining expenditures" (as both terms are defined in the Tax Act) related to the Company's projects in Ontario.

Mark Selby an officer and a director of the Company, subscribed for an aggregate of 10,000 shares under the Offering on the same terms as arm’s length investors. The participation of Mark Selby in the Offering constitutes a “related party transaction” for the purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Offering in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the securities issued to Mr. Selby nor the fair market value of the consideration for the securities issued to Mr. Selby exceeds 25% of the Company’s market capitalization as calculated in accordance with MI 61-101. The Company did not file a material change report containing all of the disclosure required by MI 61-101 more than 21 days before the expected closing date of the Offering as the aforementioned insider participation had not been confirmed at that time and the Company wished to close the Offering as expeditiously as possible.

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