Québec Nickel Corp (CSE:QNI, OTCQB:QNICF) told investors it has completed the closing of the first tranche of a brokered private placement of its stock that is targeting proceeds of up to $10 million.
The Vancouver, British Columbia-based mineral exploration company said it issued a total of 9,575,000 units at $0.20 each; 4,433,367 National flow-through shares at $0.24 each; and 10,612,000 Quebec flow-through shares at $0.25 each.
The aggregate proceeds raised from the first tranche is $5,632,008, the company added.
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The company said each unit is comprised of one common share and one-half of a common share purchase warrant, with each whole warrant entitling the holder to buy an additional share for $0.30 for two years from the closing date of the first tranche. The National flow-through shares and Quebec flow-through shares will qualify as “flow-through shares” under Canada’s Income Tax Act, it added.
It will use the private placement proceeds from the units for general working capital and exploration purposes and will use the proceeds from the flow-through shares exclusively to fund exploration work on its properties located in the Province of Québec.
The company said it was pleased to have received support and participation from its existing shareholders in the private placement.
CEO David Patterson further acknowledged the new participation and support from three Quebec-based institutional funds for this financing, SIDEX, Société de Développement de la Baie-James and CDPQ.
“This demonstrates why Quebec is consistently ranked as one of the best places for mineral exploration,” Patterson added.
Québec Nickel is a mineral exploration company focused on acquiring, exploring, the developing nickel projects in Quebec, Canada.
Contact the author at stephen.gunnion@proactiveinvestors.com