Canada Nickel Company Inc. [CNC-TSXV] said it is increasing the size of a previously announced bought deal offering to approximately $13 million from $6.5 million to help fund exploration work on the company’s 100%-owned Crawford nickel-cobalt-sulphide project in the Timmins-Cochrane area of northern Ontario.
The company said it has amended an agreement with a group of underwriters led by Echelon Wealth Partners Inc., which has agreed to purchase on a bought deal basis 5.35 million units of the company for $1.50 per unit, raising $8.02 million. Another $5.01 million is being raised from the sale of 2.95 million Canada Nickel flow-through shares at $1.70 each, the company said in a press release that came after the close of trading on September 14, 2020.
Each unit will consist of one common share of the company and one-half a warrant. Each warrant can be used to acquire one share for $2.10 for 24 months. The option is subject to an accelerated expiry option allowing the company to trigger an accelerated 30-day expiry of the warrants if the closing price of Canada Nickel’s common shares remain higher than $3.25 for 20 consecutive trading days.
On Tuesday September 15, Canada Nickel shares eased 3.05% or $0.05 to $1.59. The shares are trading in a 52-week range of $3 and 38 cents.
Canada Nickel is led by Mark Selby, the former President and CEO of RNC Minerals Corp. [RNX-TSX], where he led the development of the Dumont nickel-cobalt project through to its current status as a fully-permitted, construction-ready project. Dumont is located in the Abitibi region of Quebec and contains the second largest nickel reserve and ninth largest cobalt reserve in the world.
Spruce Ridge Resources Ltd. [SHL-TSXV], which recently sold its interest in the Crawford Project to Canada Nickel, said it was originally drawn to the project because it was underexplored, close to the Kidd Creek mine and had several priority targets from a flown EM/MAG survey.
“Our phase 1 drilling program in December 2018 was successful in that three of the four holes drilled intersected serpentinized dunite with persistent nickel values greater than 0.25% nickel over core lengths of up to 291 metres,” said Spruce Ridge President and CEO John Ryan.