Highlights
- Canada Nickel to receive flow through funding of $34.7 million
- Agnico Eagle to become a 12% shareholder
TORONTO, Jan. 2, 2024
/CNW/ - Canada Nickel Company Inc. ("Canada Nickel"
or the "Company") (TSXV: CNC) (OTCQX: CNIKF) has completed a
brokered private placement consisting of 19,600,000 units of
the Company (the "Flow-Through Units") at a price of
C$1.77 per Flow-Through Unit, with
each unit consisting of one flow-through common share of the
Company and 0.35 of one flow-through common share purchase Warrant
(the "Warrant"), as more particularly described below,
for aggregate gross proceeds of C$34,692,000 (the "Offering").
Following closing of the Offering, Agnico Eagle Mines Limited
("Agnico Eagle") acquired the units, and as a result, holds
approximately 12% of the Company's issued and outstanding common
shares on a non-diluted basis, and 15.6% on a partially-diluted
basis (assuming exercise of all of the Warrants).
"We are very pleased to welcome Agnico Eagle, one of the largest
mining companies in Canada, as an
investor in Canada Nickel.
Agnico Eagle has a long operating history in the Abitibi
region, deep technical expertise and a track record of operating
success with its core open pit, bulk-tonnage, gold assets in the
Abitibi at both Canadian Malartic and Detour Lake. The
proceeds from this Offering will help us continue to unlock the
potential of our Timmins Nickel District, which we believe has the
potential to be one of the world's largest nickel sulphide
district. This potential, combined with our novel IPT
Carbonation process to capture and store CO2, provides a
foundation for a Zero Carbon Industrial Cluster in northern
Ontario. As well, we continue to advance various offtake
initiatives which we expect to complete prior to January 18, 2024, the current repayment date for
the Auramet debt facility" said Mark
Selby, CEO of Canada Nickel.
Private Placement
Offering
Pursuant to the Offering, each Flow-Through Unit consists
of (i) one common share of the Company, each of which will qualify
as a "flow-through share" (as defined in subsection 66(15) of the
Income Tax Act (Canada)
(the "Tax Act")), and (ii) 0.35 of one purchase Warrant each of
which will qualify as a "flow-through share" (as defined in
subsection 66(15) of the Tax Act). Each whole Warrant shall
entitle the holder thereof to acquire one Common Share of the
Company (each, a "Warrant Share") at a price of C$1.77 per Warrant Share until the date that is
36 months from the closing date of the Offering, subject to
acceleration in certain circumstances.
Beginning three months from the closing date of the Offering, if
the trading price of the common shares on the TSX Venture Exchange
equals or exceeds C$2.65 per common
share for at least 20 consecutive trading days, Canada Nickel shall
have the right to accelerate, by notice to the holders of Warrants,
the expiry date of the Warrants to 30 calendar days after the date
of such notice (such that the holder may either exercise all or a
portion of the Warrants in such 30 day period, or failing such
exercise, any unexercised Warrants would expire).
All securities issued under the Offering will be subject to a
hold period expiring four months and one day from the closing date
of the Offering.
In addition, the Company entered into an investor rights
agreement with Agnico Eagle. Under the Investor Rights
Agreement, Agnico Eagle is entitled to certain rights, provided
Agnico Eagle maintains certain ownership thresholds in Canada Nickel, including: (a) the right to
participate in future issuance of Common Shares (or any securities
that are or may become convertible, exchangeable or exercisable
into Common Shares) in order to maintain its pro rata
ownership interest in Canada Nickel or acquire up to a 15.6%
ownership interest, on a partially diluted basis, in Canada Nickel; and (b) the right (which Agnico
Eagle has no present intention of exercising) to nominate one
person to the Canada Nickel Board of Directors.
Advisors
Scotiabank acted as sole bookrunner and agent for the Offering.
Scotiabank and Deutsche Bank acted as financial advisors to
Canada Nickel for the Offering.
Clarification to News Release
Dated December 18, 2023
Canada Nickel also makes a clarification to its news release
entitled "Canada Nickel Provides Financing Update" issued on
December 18, 2023 (the "Initial News
Release").
The Initial News Release stated the 350,000 common share
purchase warrants (the "Extension Warrants") issued as part of the
terms to extend the US$12 million
loan facility with Auramet International, Inc. had a one-year term.
For clarification, the Company agreed to issue, subject to the
approval of the TSX Venture Exchange, 350,000 Extension Warrants
for a nine month term, with the Extension Warrants expiring on
September 18, 2024. This
clarification does not change the other terms related to the
extension of the loan facility or any other information reported in
the Initial News Release.
The warrants and the underlying shares will be subject to a four
month hold period under applicable Canadian securities laws.
About Canada Nickel
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 has applied in multiple jurisdictions to
trademark the terms NetZero Nickel™, NetZero Cobalt™ and NetZero
Iron™ 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-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
CEO and Director
Phone: 647-256-1954
Email: info@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. Forward looking information includes,
but is not limited to, drill and exploration results relating to
the target properties described herein (the "Properties"), the
potential of the Crawford Nickel Sulphide Project, IPT Carbonation
process and the Properties, timing of economic studies and mineral
resource estimates, the ability to sell marketable materials,
strategic plans, including future exploration and development
results, and corporate and technical objectives.
Forward-looking information is necessarily based upon several
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 Properties, 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
because of new information, future events or otherwise, except as
required by law.
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SOURCE Canada Nickel Company Inc.