Canada Nickel (TSX:CNC) has closed an upsized non-brokered private placement for gross proceeds of C$21 million ($21.08 million).
The company sold 14 million units at C$1.50 per unit, each comprising one common share and half a warrant. Warrants allow holders to purchase additional shares at C$2.25 each for 36 months from the issue date.
Agnico Eagle (TSX:AEM) subsidiary Avenir Minerals (TSX-V:AVR) purchased 666,667 units as part of the offering, exercising pro rata participation rights under an investor rights agreement dated 29 December 2023.
Canada Nickel structured the placement to include purchasers outside Canada under Ontario Securities Commission rule 72-503, exempting those securities from Canadian hold periods. Securities issued to Avenir remain subject to a four-month-and-one-day hold period under Canadian securities laws.
The company plans to use the net proceeds of the offering to support permitting and engineering activities for the advancement of the company’s projects, repayment of outstanding indebtedness, and working capital and general corporate purposes.
Funding intends to aid development of Canada Nickel’s flagship Crawford Nickel-Cobalt Sulphide Project in the Timmins nickel district of Ontario.
Canada Nickel has applied for trademarks on NetZero Nickel, NetZero Cobalt, and NetZero Iron across multiple jurisdictions to produce net-zero carbon products.
Canada Nickel is focused on advancing nickel-sulphide projects to supply the rapidly growing EV and stainless steel markets.
Write to Paula Fabe at Mining.com.au
Images: Canada Nickel
