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Canada Nickel Company closes first tranche of private placement of $8 Million

Oct 1, 2020

Canada Nickel Company has announced that it has closed the first tranche of its previously announced brokered "bought deal" private placement financing and has issued an aggregate of 5,350,000 units of the company at an offer price of $1.50 per Unit for aggregate gross proceeds of $8,025,000.

The company's second tranche of its financing consisting of 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 "Flow-Through Offering") is scheduled to close on or around October 14, 2020.

Each Unit consists of 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"). Each Warrant entitles the holder thereof to acquire one common share of the Company at a price of $2.10 per common share until September 30, 2022 (the "Expiry Date"), subject to adjustment and acceleration in certain events. In accordance with the terms of the Warrants, the Company can trigger an accelerated expiry of the Warrants if the closing price of the Company's common shares on the TSX Venture Exchange (the "Exchange") remains higher than $3.25 for 20 consecutive trading days (the "Early Expiry Event") to a date that is 30 trading days from the Early Expiry Event pursuant to written notice given to the warrant agent and the holders of Warrants and pursuant to a news release issued by the Company within two days of the Early Expiry Event specifying the accelerated  expiry date.

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 Units sold under the Offering. Each Compensation Option is exercisable into one Unit at the Issue Price until September 30, 2022.

The net proceeds from the sale of the Units will be used to fund feasibility study work through 2021 on the Company's Crawford Nickel-Cobalt Sulphide Project, to accelerate exploration on the Company's option properties, and for working capital purposes. 

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