NiCAN Announces Closing of Non-Brokered Private Placement
Executive Summary
- NiCAN Limited closed a non‑brokered private placement raising C$1,500,000 in gross proceeds.
- The offering comprised 11,430,000 hard‑dollar (HD) units and 18,570,000 flow‑through (FT) units, each priced at C$0.05 per unit.
- Proceeds from FT units will be used for eligible Canadian exploration expenses on Manitoba mineral projects; HD proceeds are earmarked for general working capital.
Key Details
- Total Gross Proceeds: C$1,500,000
- HD Units: 11,430,000 units → C$571,500
- Each HD unit = 1 common share + 1 warrant (exercise price C$0.06, 24‑month term)
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FT Units: 18,570,000 units → C$928,500
- Each FT unit = 1 flow‑through share + 1 warrant (same terms as HD warrants)
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Use of Proceeds
- FT proceeds: To incur and renounce eligible “Canadian exploration expenses” that qualify as flow‑through critical mineral mining expenditures on NiCAN’s Manitoba projects, to be completed by 31 Dec 2026 with renunciation effective no later than 31 Dec 2025.
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HD proceeds: General working capital.
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Warrant Acceleration Feature: Warrants may be accelerated if TSX‑V share price ≥ C$0.18 for 20 consecutive trading days; accelerated warrants would expire 30 days after notice.
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Related Party Participation: Insiders purchased a total of 1,300,000 HD units and 400,000 FT units, representing a related‑party transaction exempt from minority shareholder approval under MI 61‑101 (below 25 % market cap).
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Finder Compensation: Paid C$1,800 cash plus 36,000 finder’s warrants (exercise price C$0.05, 36‑month term).
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Holding Period: All securities issued are subject to a four‑month‑plus‑one‑day hold period per Canadian securities law.
Notable Quotes
(No direct quotes were provided in the release.)