Canada Nickel (TSX-V:CNC) has upsized its non-brokered private placement from C$15 million to C$21 million ($21.36 million) after receiving strong investor demand.
The company is now offering up to 14 million units at C$1.50 each. Each unit comprises one common share and half a warrant, with whole warrants exercisable at C$2.25 for 36 months from the issue date.
As previously reported by Mining.com.au, Canada Nickel secured federal approval for the Crawford Project, clearing the way for project financing and planned construction next year.
The approval makes Crawford the first mining project greenlit under Canada’s amended Impact Assessment Act since 2019 and positions the operation to become the Western world’s largest nickel sulphide mine.
CEO Mark Selby says the funding will allow the company to continue advancing the Crawford Project.
“Today’s funding allows the company to continue advancing our Crawford Nickel Project towards a construction decision next year while we continue to work on various financing initiatives, which we expect to be completed later this fall,” Selby notes.
The company is offering units to purchasers outside Canada under an exemption from prospectus requirements. Securities issued to offshore purchasers will not be subject to the four-month hold period.
Canada Nickel plans to use net proceeds for permitting and engineering activities across its project portfolio, debt repayment, and working capital requirements.
The placement is scheduled to close around 28 August, subject to definitive documentation and TSX-V approval.
The company’s flagship asset is the 100%-owned Crawford Nickel-Cobalt Sulphide Project in Ontario’s Timmins Nickel District.
Canada Nickel has applied to trademark NetZero Nickel, NetZero Cobalt, and NetZero Iron terms across multiple jurisdictions as it pursues net zero carbon production processes.
Write to JC Villarba at Mining.com.au
Images: Mining.com.au
