Canada Nickel Company has closed an upsized non-brokered private placement generating gross proceeds of C$21 million as the company continues advancing its nickel development portfolio. Canada Nickel sold 14 million units at C$1.50 per unit.
Avenir Minerals purchased 666,667 of those units after exercising participation rights under an investor rights agreement with a Canada Nickel affiliate.
Each unit consists of one Canada Nickel common share and one-half of one common share purchase warrant.
Each full warrant allows its holder to purchase one additional common share for C$2.25 during the 36 months following issuance.
That structure gives participating investors equity exposure to Canada Nickel immediately while also providing potential additional capital to the company if warrants are ultimately exercised.
Canada Nickel plans to use the net proceeds for permitting and engineering activities across its projects, repayment of outstanding debt, working capital and other general corporate purposes.
The financing comes as the company continues developing nickel-sulfide assets aimed at serving demand from electric vehicles and stainless steel manufacturing.
Canada Nickel’s principal asset is the 100%-owned Crawford Nickel-Cobalt Sulphide Project in Ontario’s Timmins Nickel District.
The company is also pursuing processes intended to support production of lower-carbon nickel, cobalt and iron products and has applied in several jurisdictions to trademark its NetZero Nickel, NetZero Cobalt and NetZero Iron branding.
The C$21 million financing provides additional balance-sheet capacity as Canada Nickel moves its development projects through permitting and engineering.
Unlike a brokered financing, the transaction was completed directly with participating investors. The company had previously announced the offering on August 12 before ultimately closing it at the upsized C$21 million amount.
