Canada Nickel Company Inc. has announced the closing of its previously announced “bought deal” offering for aggregate gross proceeds of C$51,554,156.70, which includes the exercise of the Underwriters’ over-allotment option.
Under the Offering, the Company sold the following:
• an aggregate of 10,440,050 common shares of the Company (the “Common Shares”) at an issue price of $3.10 per Common Share;
• an aggregate of 3,424,658 common shares of the Company that are issued as “flow-through shares” (the “Traditional FT Shares”) within the meaning of the Income Tax Act (Canada) at an issue price of $3.65 per FT Share; and
• an aggregate of 1,500,000 common shares of the Company issued as “flow-through shares” (the “Charity FT Shares” and, together with the Traditional FT Shares, the “FT Shares”) within the meaning of the Income Tax Act (Canada) as part of a charitable donation arrangement at a price of $4.46 per Charity FT Share.
The Offering was completed pursuant to an underwriting agreement dated March 14, 2022 entered into among the Company and a syndicate of underwriters led by Red Cloud Securities Inc., and including Clarksons Platou Securities SA, Scotia Capital Inc., BMO Nesbitt Burns Inc., Cormark Securities Inc., Echelon Wealth Partners Inc., Haywood Securities Inc., Research Capital Corporation (collectively, the “Underwriters”).
In connection with the Offering the Underwriters received an aggregate cash commission of $3,086,103.40. The gross proceeds from the sale of the FT Shares will be used by the Company to incur eligible “Canadian exploration expenses” that will qualify as “flow-through mining expenditures” (within the meaning of Income Tax Act (Canada)) on or prior to December 31, 2023 for renunciation to subscribers of FT Shares effective December 31, 2022. The net proceeds from the sale of Common Shares will be used primarily to repay existing indebtedness, advance the Company’s Crawford project through a feasibility study, and for general corporate and working capital purposes.
The Company filed a final short form prospectus (the “Prospectus”) in the provinces of Ontario, British Columbia and Alberta, pursuant to National Instrument 44-101 – Short Form Prospectus Distributions to qualify for distribution the Common Shares and FT Shares offered pursuant to the Offering. Copies of the Prospectus and documents incorporated by reference therein are available electronically on SEDAR (www.sedar.com) under Canada Nickel’s issuer profile.