TSXV: CNC | OTCQB: CNIKF
TORONTO, July 27, 2021 /CNW/ - Canada Nickel
Company Inc. ("Canada Nickel" or the "Company") (TSXV:
CNC) (OTCQB: CNIKF) is pleased to announce the completion of its
previously announced "bought deal" brokered private placement of an
aggregate of 2,981,000 "flow-through shares" of the Company ("FT
Shares"), at an issue price of C$4.10
per FT Share, for aggregate gross proceeds of C$12,222,100, including the exercise in full of
the underwriters' 15% over-allotment option (the
"Offering").
Mark Selby, Chair and CEO said, "The
closing of 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,
demonstrated by our latest success at Nesbitt, and advance our discussions with
potential strategic
partners."
The Offering was led by Cantor Fitzgerald Canada Corporation and
Echelon Wealth Partners Inc. as joint bookrunners and lead
underwriters and a syndicate of underwriters that included Haywood
Securities Inc., PI Financial Corp., Research Capital Corp. and Red
Cloud Securities Inc., (collectively, the " Underwriters "). In
consideration of their services, the Company paid the Underwriters
a cash commission of 6.0% of the gross proceeds of the
Offering.
The gross proceeds from the sale of the FT Shares will be used
by the Company to incur eligible "Canadian exploration expenses"
that qualify as "flow-through mining expenditures" as both terms
are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures"),
related to the Company's projects in Ontario. The Qualifying Expenditures will be
renounced in favour of the subscribers of the FT Shares with an
effective date no later than December 31,
2021, and in the aggregate amount not less than the total
amount of the gross proceeds raised from the issuance of the FT
Shares. Upon completion of the Offering, the Company is
expected to have 88,134,185 common shares outstanding.
All securities issued under the Offering will be subject to a
hold period expiring four months and one day from the date of
issuance, being November 28,
2021.
Certain directors and officers of the Company subscribed for an
aggregate 46,500 FT Shares under the Offering on the same terms as
arm's length investors. The participation of the directors and
officers 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 the directors and officers nor the fair market value of
the consideration for the securities issued to the directors and
officers 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.
This press 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 or for the
account or benefit of a U.S. person (as defined in Regulation S
under the U.S. Securities Act) unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
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. For more information, please visit www.canadanickel.com.
For further information, please contact:
Mark Selby, Chair and CEO
Phone: 647-256-1954
Email: info@canadanickel.com
Cautionary Statement Concerning Forward-Looking Statements
This
news release contains "forward-looking information" within the
meaning of the applicable Canadian securities legislation that is
based on expectations, estimates and projections as at the date of
this news release. The information in this news release about the
Offering; the use of the proceeds from the Offering; the
jurisdictions in which the FT Shares will be offered or sold; the
number of FT Shares offered or sold; the size of the Offering; the
timing and ability of the Company to close the Offering, if at all;
the timing and ability of the Company to satisfy the customary
listing conditions of the TSX Venture Exchange, if at all; the
timing and ability of the Company to obtain all necessary
approvals; the tax treatment of the securities issued under the
Offering under the Income Tax Act (Canada) and Taxation Act (Ontario); the timing to renounce all
Qualifying Expenditures in favour of the subscribers, if at all;
and any other information herein that is not a historical fact may
be "forward-looking information". Any statement that involves
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions, future events or
performance (often but not always using phrases such as "expects",
or "does not expect", "is expected", "anticipates" or "does not
anticipate", "plans", "budget", "scheduled", "forecasts",
"estimates", "believes" or "intends" or variations of such words
and phrases or stating that certain actions, events or results
"may" or "could", "would", "might" or "will" be taken to occur or
be achieved) are not statements of historical fact and may be
forward-looking information and are intended to identify
forward-looking information. This forward-looking information is
based on reasonable assumptions and estimates of management of the
Company, at the time it was made, involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking information. Such
factors include, among others, risks relating to the Offering;
volatility in the trading price of common shares of the Company;
risks relating to the ability of the Company to obtain required
approvals, complete definitive documentation and complete the
Offering; the ability of the Company to complete further
exploration activities, including drilling; property interests; the
results of exploration activities; risks relating to mining
activities; the global economic climate; metal prices; dilution;
environmental risks; changes in the tax and regulatory regime; and
community and non-governmental actions. Although the
forward-looking information contained in this news release is based
upon what management believes, or believed at the time, to be
reasonable assumptions, the Company cannot assure shareholders and
prospective purchasers that actual results will be consistent with
such forward-looking information, as there may be other factors
that cause results not to be as anticipated, estimated or intended,
and neither the Company nor any other person assumes responsibility
for the accuracy and completeness of any such forward-looking
information. The Company does not undertake, and assumes no
obligation, to update or revise any such forward-looking statements
or forward-looking information contained herein to reflect new
events or circumstances, except as may be required by law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release. No stock exchange, securities
commission or other regulatory authority has approved or
disapproved the information contained herein.
SOURCE Canada Nickel Company Inc.