/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN
CANADA ONLY AND IS NOT INTENDED
FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
TORONTO, Oct. 14, 2020 /CNW/ - Canada Nickel Company Inc.
(TSX-V: CNC) ("Canada Nickel" or the "Company") is
pleased to announce that it has closed the second tranche of its
previously announced brokered "bought deal" private placement
financing and has issued 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
"Offering").
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 Flow-Through
Shares sold under the Offering. Each Compensation Option is
exercisable into 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") at a price of
$1.50 per Compensation Option. Each
Warrant entitles the holder thereof to acquire one common share of
the Company at a price of $2.10 per
common share until October 14, 2022,
subject to adjustment and acceleration in certain events.
The gross proceeds received by the Company from the sale of the
Flow-Through Shares will be used to incur Canadian Exploration
Expenses that are "flow-through mining expenditures" (as such terms
are defined in the Income Tax Act (Canada)) on the Company's properties in
Ontario, which will be renounced
to the subscribers with an effective date no later than
December 31, 2020, in the aggregate
amount of not less than the total amount of the gross proceeds
raised from the issue of Flow-Through Shares.
All securities issued under the Offering will be subject to a
hold period expiring February 15,
2021. The Offering is subject to final acceptance of the
Exchange.
The securities offered pursuant to the Offering have not been
registered under the U.S. Securities Act of 1933, as amended, and
may not be offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any State in which
such offer, solicitation or sale would be unlawful.
Neither the Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the 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, NetZero IronTM 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, the use of the net proceeds of the Offering; the
timing and ability of the Company, if at all, to obtain final
approval of the Offering from the Exchange; the tax treatment of
the Flow-Through Shares; the timing of the tax renunciation to the
subscribers; statements regarding exploration results and
exploration plans; statements regarding trade-mark applications and
statements regarding the development of production processes.
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 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, 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.