TORONTO, July 6, 2021 /CNW/ - Canada Nickel Company Inc.
("Canada Nickel" or the "Company") (TSXV: CNC)
(OTCQB: CNIKF) is pleased to announce it has entered into an
agreement with Cantor Fitzgerald Canada Corporation and Echelon
Wealth Partners as joint bookrunners and lead underwriters on
behalf of a syndicate of underwriters (collectively, the
"Underwriters"), pursuant to which the Underwriters have
agreed to purchase, on a "bought deal" private placement basis,
flow-through common shares of the Company (the "FT Shares")
at a price of $4.10 per FT Share (the
"Issue Price"), for total gross proceeds of $10 million (the "Offering").
Mark Selby, Chair and CEO
said, "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 and advance
our discussions with potential strategic partners."
The net proceeds from the sale of the FT Shares will be used to
fund the exploration program through 2021 on
the Company's wholly-owned Crawford Nickel
Sulphide Project.
The Offering is expected to close on or about July 27, 2021 or such other date as the Company
and the Underwriters may agree upon, and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the TSX Venture
Exchange and the applicable securities regulatory authorities. The
FT Shares to be issued under the Offering will be subject to a hold
period in Canada expiring four
months and one day from the closing date of the
Offering. In connection with the Offering, the Underwriters will
receive a cash commission of 6.0% of the gross proceeds of the
Offering.
In addition, the Company has also granted the Underwriters an
over-allotment option to purchase up to an additional 15% of the
number of FT Shares sold. This over-allotment option is exercisable
in whole or in part at any time up to 48 hours prior to the closing
date of the Offering.
The securities offered 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.
About Canada Nickel Company
Canada Nickel Company Inc. is advancing the next generation of
nickel sulphide projects to deliver nickel 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 in low political
risk jurisdictions. Canada Nickel is currently anchored by its
100% owned flagship Crawford Nickel Sulphide Project in
the heart of the prolific Timmins-Cochrane mining camp.
For more information, please visit
www.canadanickel.com.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain information that may
constitute "forward-looking information" under applicable Canadian
securities legislation. Generally, forward-looking information can
be identified by the use of forward-looking terminology such as
"plans", "expects", or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"does not anticipate", or "believes" or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might", or "will be taken", "occur", or "be
achieved".
Forward looking information includes, but is not limited to,
the use of proceeds of the Offering; the timing and ability
of the Company, if at all, to obtain final approval of the Offering
from the TSX Venture Exchange; the tax treatment of the FT Shares;
the timing of the tax renunciation to the subscribers; and
statements regarding exploration results and exploration plans.
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, risks of the mining industry, delays in
obtaining governmental approvals, failure to obtain regulatory or
shareholder approvals, and the impact of COVID-19 related
disruptions in relation to the Company's business operations
including upon its employees, suppliers, facilities and other
stakeholders. 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.