TORONTO, Aug. 11, 2020 /CNW/ - Canada Nickel Company
Inc. (TSXV: CNC) ("Canada Nickel" or the "Company")
announced today an offering (the "Offering") of up to 600,000
flow-through common shares ("FT Shares") at a price of $2.60 per FT Share, for total gross proceeds of
approximately $1.5 million. The FT
Shares will be offered by way of a best efforts non-brokered
private placement to "accredited investors" resident in a Canadian
jurisdiction.
The gross proceeds of the Offering will be used to fund
advancement of the Company's nickel-cobalt sulphide exploration
activities through the incurrence of expenses that are eligible
"Canadian Exploration Expenses" which will also qualify as
"flow-through mining expenditures" within the meaning of s. 127(9)
of the Income Tax Act (Canada), and will be eligible for the 5%
Ontario Focused Flow-Through Share Credit pursuant to the Ontario
Taxation Act.
The closing of the Offering is anticipated to occur on or around
September 10, 2020, 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.
Extension to Accelerated Expiry Date applicable to
Warrants
The Company also announced today that it is extending the
Accelerated Expiry Date applicable with respect to the common share
purchase warrants (the "Warrants"), issued on May 5, 2020 under the warrant indenture (the
"Warrant Indenture") between TSX Trust Company (the "Warrant
Agent") and the Company, from August 21,
2020 to September 14, 2020
(the "Accelerated Expiry Date") to allow Warrant holders additional
time to exercise their Warrants. The Company has delivered to the
Warrant Agent a notice of the occurrence of an Early Expiry Event
(as defined in the Warrant Indenture) and its election to extend
the expiry date of the Warrants the Accelerated Expiry Date.
Mark Selby, Chair and CEO of
Canada Nickel, commented "We are making this change after receiving
several requests from some of our retail shareholders, particularly
those who have shares in registered accounts, to extend the
original accelerated expiry date beyond the four-month hold period
of the underlying shares. We appreciate the support that all of our
investors have shown Canada Nickel since listing in February 2020 and we are glad to be in a position
to accommodate this request. We are also pleased to announce
this financing which will allow us to aggressively pursue
additional exploration targets once our in-fill drilling for the
current resource is completed this month."
Any Warrants that have not been exercised by 5:00 p.m. (Toronto time) on the extended Accelerated
Expiry Date (September 14, 2020) will
automatically expire and no longer be exercisable. Warrant holders
who have already exercised their Warrants need not take any
action. Questions regarding this acceleration or the
exercise of the Warrants should be directed to the Company at
info@canadanickel.com.
Neither 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.
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 Company has applied in multiple
jurisdictions to trademark the terms NetZero NickelTM,
NetZero CobaltTM, NetZeroIronTM and is
pursuing the development of processes to allow the production of
net zero carbon nickel, cobalt, and iron products. 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 Concerning 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, timing of the completion and size of the
Offering, drill results relating to the Crawford Nickel-Cobalt
Sulphide Project, the potential of the Crawford Nickel-Cobalt
Sulphide Project, timing of economic studies and resource
estimates, 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, timing of the
updated resource estimate, 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.