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TORONTO, May 11, 2023
/CNW/ - Nickel Creek Platinum Corp. (TSX: NCP) ("Nickel
Creek" or the "Company") is pleased to announce that it
has closed the first tranche ("Tranche 1") of its previously
announced non-brokered private placement (the "Private
Placement") pursuant to which the Company is issuing a total of
31,503,656 units ("Units") for gross proceeds of
approximately $1.4 million.
The Units were priced at $0.045
with each Unit consisting of one common share of the capital of the
Company (each, a "Common Share") and one-half of one common
share purchase warrant (each whole common share purchase warrant, a
"Warrant"), with each Warrant exercisable for one Common
Share (each, a "Warrant Share") at an exercise price of
$0.08 for a period of three (3) years
from the date of issuance, subject to adjustment upon certain
customary events.
The net proceeds from the Private Placement will be used to fund
the Company's completion of the Prefeasibility Study
("PFS"), ongoing permitting activities and holding costs at
its 100%-owned Nickel Shäw Project, and for general corporate
expenses and working capital purposes.
In connection with the Private Placement, the Company's largest
shareholder, Electrum Strategic Opportunities Fund L.P.
("Electrum"), has acquired 27,777,778 Units or approximately
88% of Tranche 1 of the Private Placement for a total investment of
$1.25 million.
Stuart Harshaw, President and
Chief Executive Officer of Nickel Creek, commented: "The
participation of Electrum demonstrates significant endorsement for
our flagship Nickel Shäw Project from the Company's largest
shareholder."
All Common Shares and Warrants issued under the Private
Placement are subject to a statutory hold period of four months and
one day from the date of closing.
The second tranche of the Private Placement is expected to occur
during the week of May 23, 2023 and
remains subject to the approval of the Toronto Stock Exchange and
other customary closing conditions for a transaction of this
nature. The Units will be issued on a private placement basis
pursuant to exemptions from prospectus requirements under
applicable securities laws. The Common Shares and the Warrants (and
any Warrant Shares, as applicable) will be subject to a statutory
hold period of four months and one day from the date of issuance of
the Units.
Pursuant to Multilateral Instrument 61-101 - Protection of
Minority Security Holders in Special Transactions ("MI
61-101"), the Private Placement would constitute a "related
party transaction" as Electrum (and certain other insiders of the
Company) will subscribe for Units. These transactions will be
exempt from the formal valuation and minority shareholder approval
requirements of MI 61-101, as the fair market value of any Units
subscribed for by insiders pursuant to the Private Placement will
not exceed 25% of the Company's market capitalization.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in the United States nor shall there be any sale
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities have not
been and will not be registered under the United States Securities
Act of 1933, as amended (the "1933 Act"), or any state
securities laws and may not be offered or sold in the United States unless registered under the
1933 Act and any applicable securities laws of any state of
the United States or an applicable
exemption from the registration requirements is available.
About Nickel Creek Platinum
Corp.
Nickel Creek Platinum Corp. (TSX: NCP) (OTCQB: NCPCF) is a
Canadian mining exploration and development company and its
flagship asset is its 100%-owned Nickel Shäw Project. The Nickel
Shäw Project is a large undeveloped nickel sulphide project in one
of the most favourable jurisdictions in the world, with a unique
mix of metals including copper, cobalt and platinum group metals.
The Nickel Shäw Project has exceptional access to infrastructure,
located three hours west of Whitehorse via the paved Alaska Highway, which further offers
year-round access to deep-sea shipping ports in southern
Alaska.
The Company is led by a management team with a proven track
record of successful discovery, development, financing and
operation of large-scale projects. Our vision is to create value
for our shareholders by becoming a leading North American nickel,
copper, cobalt and PGM producer.
Cautionary Note Regarding Forward-Looking Information
This news release includes certain information that may be
deemed "forward-looking information". Forward-looking information
can generally be identified by the use of forward-looking
terminology such as "may", "will", "expect", "intend", "believe",
"continue", "plans" or similar terminology, or negative
connotations thereof. All information in this release, other than
information of historical facts, including, without limitation,
statements relating to the Private Placement, the timing of closing
of the Private Placement, insider participation in the Private
Placement, completion of the PFS, and general future plans and
objectives for the Company and the Nickel Shäw Project, are
forward-looking information that involve various risks and
uncertainties. Although the Company believes that the expectations
expressed in such forward-looking information are based on
reasonable assumptions, such expectations are not guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking information.
For more information on the Company and the key assumptions,
risks and challenges with respect to the forward-looking
information discussed herein, and about our business in general,
investors should review the Company's most recently filed annual
information form, and other continuous disclosure filings which are
available at www.sedar.com. Readers are cautioned not to place
undue reliance on forward-looking information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
SOURCE Nickel Creek Platinum Corp.