Brokered deal has C$675,000 greenshoe; proceeds fund working capital
By Devika Patel
Knoxville, Tenn., July 8 - First Nickel Inc. said it will conduct a C$4.5 million private placement of units via a syndicate of agents led by Paradigm Capital Inc. and including Raymond James Ltd. The deal has a C$675,000 greenshoe.
The company will sell 28,125,000 units of one common share and one half-share warrant at C$0.16 apiece on a best efforts basis, with each whole warrant exercisable at C$0.22 for two years. The strike price reflects a 25.71% premium to the July 7 closing share price of C$0.175.
Resource Capital Funds will invest C$2 million and West Face Capital Inc. may invest C$2.25 million.
Settlement is expected July 19.
Proceeds will be used for general corporate and working capital purposes, and to fulfill funding and hedging conditions set forth in the credit agreement with Societe Generale (Canada Branch) and Commonwealth Bank of Australia.
First Nickel is a nickel and copper mining and exploration company based in Toronto.
| Issuer: | First Nickel Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$4.5 million
|
| Greenshoe: | C$675,000
|
| Units: | 28,125,000
|
| Price: | C$0.16
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.22
|
| Agents: | Paradigm Capital Inc. (lead), Raymond James Ltd.
|
| Investor: | Resource Capital Funds (for C$2 million), West Face Capital Inc. (for C$2.25 million)
|
| Pricing date: | July 8
|
| Settlement date: | July 19
|
| Stock symbol: | Toronto: FNI
|
| Stock price: | C$0.175 at close July 7
|
| Market capitalization: | C$75.12 million
|
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