Canada Nickel Company (TSXV: CNC) (OTC: CNIKF), citing significant investor demand, has amended the terms of its earlier agreement with a syndicated of underwriters led by Red Cloud Securities to increase the size of its public offering from $25 million to $45 million.
Under the revised offering, the underwriters will purchase for resale the following equity securities of the company on a bought deal basis: 8.32 million common shares at $3.10 per share, 3.42 million flow-through shares at $3.65 per share, and 1.5 million flow-through shares to be sold to charitable purchasers at $4.46 per share.
Net proceeds of this financing will be used by Canada Nickel for repay its current loan with Auramet, and for other purposes such as advancing its flagship Crawford nickel sulphide project in Ontario through feasibility study, which is expected in the fourth quarter of 2022.
A 2021 preliminary economic assessment (PEA) on the Crawford project, located 40 kilometres north of Timmins, envisioned a 25-year operation capable of producing 842,000 tonnes of nickel, based on its estimated measured and indicated resources of 653.5 million tonnes grading 0.26% nickel.
In January, the company secured a US$10 million loan from precious metals trader Auramet International to help advance its Crawford project through the first quarter.
As part of the project's feasibility work, metallurgical tests are currently being conducted to confirm flowsheet improvements. Results so far have indicated the potential achievement of 40-50% for the high-grade nickel concentrate, above the current 35% target for this product.
For more details, please visit www.canadanickel.com.