Peterson McVicar Acts for Red Cloud in Canada Nickel C$25.0 Million Bought Deal Public Offering

On March 8, 2022 Canada Nickel Company Inc. (“Canada Nickel” or the “Company”) announced that it had entered into an agreement with Red Cloud Securities Inc. (“Red Cloud”) to act as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters that includes Clarksons Platou Securities AS. (collectively, the “Underwriters”) pursuant to which the Underwriters have agreed to purchase for resale the following equity securities of the Company on a bought deal basis to raise aggregate gross proceeds to the Company of C$25,000,005 (the “Offering”):

 

• 4,032,259 common shares of the Company (each, a “Common Share”) at a price of C$3.10 per Common Share; and
• 3,424,658 common shares of the Company to be issued as “flow-through shares” within the meaning of the Income Tax Act (Canada) (each, a “FT Share”, and together with the Common Shares, the “Offered Securities”) at a price of C$3.65 per FT Share.

 

The Company plans to use the net proceeds of the Offering to repay the Company’s current loan with Auramet and for general working capital and corporate purposes such as advancing the project through Feasibility Study. The gross proceeds from the issuance of the FT Shares will be used for “Canadian Exploration Expenses” (within the meaning of the Income Tax Act (Canada)) (the “Qualifying Expenditures”), which will be renounced with an effective date no later than December 31, 2022 to the purchasers of the FT Shares in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares. If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each purchaser of FT Shares for any additional taxes payable by such purchaser as a result of the Company’s failure to renounce the Qualifying Expenditures.

 

The Offered Securities will be sold by way of a short form prospectus to be filed in British Columbia, Alberta and Ontario. The Offering is scheduled to close on or around April 7, 2022 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.

 

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 Nickel(TM), NetZero Cobalt(TM) and NetZero Iron(TM) 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.

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