Quebec Nickel upsizes financing to $7 million

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Quebec Nickel Corp. [QNI-CSE] said it has upsized a previously announced non-brokered private placement and now expects to raise $7 million. That’s up from the previous $5 million target.

The company said it is arranging a private placement of up to $1 million worth of units at 24 cents per unit, and up to $6 million in flow-through shares at 25 cents each, as well as Quebec flow-through shares at 26 cent each. The placement will also include premium flow-through units at 42 cents each.

The units will each consist of one common share and one-half of a transferable common share purchase warrant. Each premium FT unit will consist of one flow-through common share and one-half of one transferrable warrant to be issued on a non-flow-through basis.

Each warrant will entitle the holder to acquire one additional common share at 32 cents for up to two years from the closing date.

As a result, aggregate proceeds are expected to be $7 million. Proceeds from the flow through shares will be used for Canadian exploration expenses.

On Thursday, the shares were unchanged at 27.5 cents and trade in a 52-week range of 38.5 cents and 10 cents.

Quebec nickel’s principal asset is the Ducross Group Property which is located on the Abitibi Greenstone Belt in Quebec

The property is located approximately 80 kilometres northwest of the city of Val-d’Or, halfway between the towns of Senneterre and Lebel-sur-Quevillon.

It consists of 239 contiguous mining claims, covering 12,818 hectares. Initial exploration is expected to consist of heliborne magnetic and electromagnetic surveys, reconnaissance mapping, prospecting and sampling, outcrop stripping and detailed mapping.

Quebec Nickel is headed by CEO David Patterson, a former CEO of Emerita Resources Corp. [EMO-TSXV], an exploration and development company with a focus on Spain. He was also chief financial officer of Donner Metals Ltd., which was listed on the TSX Venture Exchange from August 2005, to October, 2012.

Quebec Nickel director Michael Rosatelli is an experienced mineral exploration geologist who has worked for over 30 years in various positions with both major and junior companies, including BHP Billiton Ltd. [BHP-NYSE, BHPLF-OTCPK], AngloGold Ashanti, Band-Ore and Kennecott.

The Ducros Group property is known to contain magmatic nickel-copper-platinum group element (PGE) sulphide mineralization hosted within known ultramafic intrusive units associated with historical mineralized occurrences defined by surface mapping and drilling.

The company said it sees the potential for both bulk tonnage and high-grade nickel sulphide zones with significant copper and platinum, plus palladium mineralization, based on existing historical exploration work conducted only over limited sections of the extensive ultramafic intrusions indicated on the property.

Presently, two known nickel-copper-PGE magmatic sulphide showings (the Fortin Showing and Ducros Sill) are known to exist on the property and have only seen limited surface sampling and drilling. However, based on the extensive mapped ultramafic intrusions mapped, considerable potential exists for delineating new sulphide occurrences or extensions of the known historical exploration at depth and along strike.

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