Deal to fund continued ramp up and development of the Beta Hunt Mine
By Devika Patel
Knoxville, Tenn., Sept. 9 – Royal Nickel Corp. said it has arranged an C$8 million private placement of units with a C$1.2 million greenshoe. The deal will be conducted by a syndicate of underwriters led by Haywood Securities Inc. It priced for C$6 million with a C$900,048 greenshoe on Friday and was upsized a few hours later.
The company will sell 23.53 million units of one common share and one half-share warrant at C$0.34 per unit.
Each full warrant will be exercisable at C$0.50 for two years. The strike price reflects a 47.06% premium to the Sept. 8 closing share price of C$0.34.
Settlement is expected Sept. 23.
Proceeds will be used for continued ramp up and development of the Beta Hunt Mine, as well as for working capital and general corporate purposes.
The nickel explorer is based in Toronto.
| Issuer: | Royal Nickel Corp.
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| Issue: | Units of one common share and one half-share warrant
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| Amount: | C$8,000,200
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| Greenshoe: | C$1,200,030, or 3,529,500 units
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| Units: | 23.53 million
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| Price: | C$0.34
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| Warrants: | One half-share warrant per unit
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| Warrant expiration | Two years
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| Warrant strike price: | C$0.50
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| Underwriters: | Haywood Securities Inc. (lead)
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| Pricing date: | Sept. 9
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| Upsized: | Sept. 9
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| Settlement date: | Sept. 23
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| Stock symbol: | Toronto: RNX
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| Stock price: | C$0.34 at close Sept. 8
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| Market capitalization: | C$96.52 million
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