VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 8, 2017) - North American Nickel Inc. (TSX VENTURE:NAN)(OTCBB:WSCRF) (CUSIP: 65704T 108) (the "Company") announces that it has closed its previously announced marketed offering of units ("Units") of the Company for total gross proceeds of $10,877,312.47 (the "Offering"). The Company has issued under the Offering 145,030,833 Units at a price of $0.075 per Unit. Each Unit consists of one common share in the capital of the Company (a "Common Share") and one-half of one common share purchase warrant of the Company (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Common Share at any time prior to 5:00 p.m. (Toronto time) on the date that is twenty-four (24) months following the date of issue, at an exercise price of $0.12.
The Offering was completed through Paradigm Capital Inc. (the "Agent"), acting as agent. A cash fee equal to 7.0% of the gross aggregate proceeds realized by the Company in respect of the sale of the Units by the Agent (excluding any proceeds raised from the sale of Units to purchasers on the Company's president's list) as well as compensation options equal to 5.0% of the number of Units sold by the Agent (excluding any Units sold to purchasers on the Company's president's list), were paid to the Agent in conjunction with the Offering.
The Company has also granted the Agent an option to cover over-allotments (the "Over Allotment Option"), which will allow the Agent to arrange for purchasers to acquire up to an additional 15% of the number of Units initially available under the Offering. The Over Allotment Option is exercisable, in whole or in part and subject to approval by the Company, up to 30 days from and including the closing date of the Offering.
Sentient Executive GP IV, Limited (in its capacity as the general partner of Sentient Global Resources Fund IV, L.P) (collectively, "Sentient") subscribed for a total of 94,666,666 Units under the Offering. Sentient, which is an insider and a related party of the Company, now beneficially owns, or exercises control or direction over, 317,809,821 Common Shares or approximately 61.88% of the currently issued and outstanding Common Shares.
Sentient's participation under the Offering is considered a "related party transaction" as set out in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) as neither the fair market value of the Units issued nor the consideration paid for the Units by Sentient under the Offering exceeds 25% of the Company's market capitalization.
The Company intends to use the net proceeds of the Offering for the commencement of a work program and additional exploration and drilling activities to be completed at the Company's Maniitsoq project in Greenland and for general corporate and working capital purposes.
The Offering was completed pursuant to a short form prospectus filed in each of the provinces of British Columbia, Alberta, Manitoba and Ontario. A copy of the short form prospectus, which contains important information relating to the Units, is available on SEDAR at www.sedar.com.
This press release does not constitute an offer of securities for sale in the United States or to "U.S. persons" ("U.S. persons"), as such term is defined in Regulation S promulgated under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act"). The securities being offered have not been, nor will be, registered under the U.S. Securities Act or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from such registration requirements.
About North American Nickel
North American Nickel is a mineral exploration company with 100% owned properties in Maniitsoq, Greenland and Sudbury, Ontario.
The Maniitsoq property in Greenland is a Camp scale project comprising 2,985 square km covering numerous high-grade nickel-copper sulphide occurrences associated with norite and other mafic-ultramafic intrusions of the Greenland Norite Belt (GNB). The >75km-long belt is situated along, and near, the southwest coast of Greenland accessible from the existing Seqi deep water port (See NAN News Release dated January 19, 2015) with an all year round shipping season and abundant hydro-electric potential.
The Post Creek/Halcyon property in Sudbury is strategically located adjacent to the past producing Podolsky copper-nickel-platinum group metal deposit of KGHM International Ltd. The property lies along the extension of the Whistle Offset dyke structure. Such geological structures host major Ni-Cu-PGM deposits and producing mines within the Sudbury Camp.
