- Canada Nickel Company (CNC) has closed its investment from Anglo American and a bought deal offering for a total of $44 million
- Anglo American subscribed for roughly 12.5 million CNC common shares for $1.95 per common share, and 952,623 common shares at $1.77 per common share
- CNC also closed its bought deal offering $18.2 million for a combination of its regular common shares and flow-through shares
- The collective proceeds will fund eligible exploration expenses, advancing CNC’s Ontario projects, and general working capital
- Canada Nickel Company (CNC) is down 1.17 per cent, trading at $1.69 per share as of 2:14 p.m. EST
Canada Nickel Company (CNC) has closed its investment from Anglo American and a bought deal offering for a total of $44 million.
Under the investment, Anglo American subscribed for roughly 12.5 million CNC common shares for $1.95 per common share and 952,623 common shares at $1.77 per common share. Anglo American now holds 9.90 per cent of CNC’s issued and outstanding common shares.
Alongside this, CNC also closed its bought deal offering for $18.2 million. As a result, the company sold 7.46 million of its common shares for $1.77 each and 1.74 million flow-through common shares for $2.86 apiece.
The bought deal offering was completed under an underwriting agreement signed last month. The participating underwriters received a cash commission equal to 6.00 per cent of the offering’s proceeds. However, no commission was paid to the underwriters involved in the Anglo American investment.
Proceeds to support flagship asset
According to the company, proceeds raised from the bought deal offering will cover eligible exploration expenses.
Also, the financing raised from the Anglo American investment will mainly be used for the exploration and advancement of the Crawford nickel-cobalt sulphide project, its other Ontario properties, repayment of the Auramet loan facility, and for general working capital purposes.
Canada Nickel is advancing its nickel-cobalt sulphide projects to support the electric vehicle and stainless-steel markets. It has already successfully registered and applied for trademarks in various jurisdictions. The company is developing processes for net zero carbon nickel, cobalt, and iron product manufacturing.
Canada Nickel Company (CNC) is down 1.17 per cent, trading at $1.69 per share as of 2:14 p.m. EST.
