Canada Nickel Company Inc. [CNC-TSXV] has announced a fully subscribed non-brokered private placement for the sale of 4.24 million common shares that will qualify as flow-through shares under the Income Tax Act (Canada) priced at $1.06 per FT share for gross proceeds of $4.5 million.
The company also said a previously announced private placement (the brokered offering, and collectively with the flow-through offering) is fully subscribed for the sale of 15.2 million units at a price of 85 cents per unit for gross proceeds of $13.0 million, which includes gross proceeds from the full exercise of the agents option. “The aggregate gross proceeds to the company from the offerings will be approximately $17.5 million,’’ Canada Nickel said in a press release.
Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share for $1.20 at any time on or before the date which is 36 months after closing which is set to occur on June 26, 2025.
Gross proceeds from the flow-through offering will be used to incur eligible resource exploration expenditures that qualify as (i) Canadian exploration expenses as defined under the Income Tax Act Canada, (ii) flow-through critical mineral mining expenditures, and (iii) eligible Ontario critical mineral exploration expenditures.
Canada Nickel shares eased 1.14% or $0.087 to 87 cents in early trading Thursday. The shares trade in a 52-week range of $1.33 and 73.5 cents.
Canada Nickel is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt and iron products. The company is anchored by its 100%-owned Crawford Nickel-Cobalt Sulphide project, which the company believes has the potential to become one of the world’s largest nickel-sulphide districts.
The company is also aiming to incorporate carbon capture and storage into its flagship Crawford nickel project. The company recently said Carbon capture test work confirms that it could store one million tonnes of carbon annually.
Canada Nickel recently announced the receipt of a letter of intent (LOI) from Export Development Canada, stating its interest in providing long term funding of up to US$500 million in debt financing for the development of the company’s flagship Crawford Project, in Timmins, Ont.
“EDC could consider a debt tenor of up to 18 years, subject to certain conditions,” Canada Nickel said. “EDC’s participation in project financing is subject to the successful completion of its rigorous due diligence process.’’
Agnico-Eagle Mines Ltd. (AEM-TSX, AEM-NYSE) holds a 12% stake in the company on a non-diluted basis.
