Canada Nickel arranges $12-million bought deal

Executive Summary

• Canada Nickel Company Inc. announced a bought deal private placement of 10 million units at $1.20 per unit, raising gross proceeds of C$12.0 million.
• The proceeds are designated for the advancement of the Crawford nickel sulphide project, working capital, and general corporate purposes.
• The transaction includes an overallotment option for up to 2.5 million additional units, potentially increasing gross proceeds by $3.0 million.

Key Details

• Transaction Structure: Bought deal private placement via a syndicate of underwriters led by Red Cloud Securities Inc.
• Units Sold: 10,000,000 units.
• Price: $1.20 per unit.
• Gross Proceeds: $12,000,000 CAD.
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms: Each whole warrant entitles the holder to purchase one common share at an exercise price of $1.80. Warrants are exercisable for 36 months following the closing date.
• Overallotment Option: Underwriters have an option to purchase up to 2,500,000 additional units at $1.20 per unit for up to $3,000,000 in additional gross proceeds.
• Use of Proceeds: Advancement of the wholly owned Crawford nickel sulphide project, working capital, and general corporate purposes.
• Closing Date: Scheduled on or around December 11, 2025.
• Conditions: Subject to listing on the TSX Venture Exchange and receipt of necessary regulatory approvals.
• Underwriter Compensation:
  • Cash commission of 6.0% of gross proceeds.
  • Issuance of warrants to underwriters equal to 6.0% of the number of units sold, exercisable for 36 months at the offering price ($1.20).
• Hold Periods:
  • Canadian purchasers: Four-month hold period.
  • Non-Canadian purchasers: No four-month hold period expected.
• Strategic Context: CEO Mark Selby stated the funding allows the company to ramp up activities while working with the Major Projects Office to unlock financing for the Crawford project, with a goal to break ground by the end of next year.

Notable Quotes

• "Following the referral by the government of Canada to the Major Projects Office, this funding allows us to ramp up activities while we're working with the government and the Major Projects Office to unlock the financing necessary to achieve our previously announced goal of breaking ground and beginning construction on our Crawford nickel project by the end of next year." — Mark Selby, Chief Executive Officer