Nickel North Exploration (TSX-V:NNX) Corp said it has closed the first tranche for $470,500 of the $1 million private placement it previously announced on April 5, 2022.
The company said the proceeds of the current financing will be used for field exploration programs on its Hawk Ridge Ni-Cu-PGE-Co project, on updating previous NI 43-101 resource estimate and historical reserves to the current 43-101 compliant resources, and general working capital.
In a statement, Dr. Tony Guo, CEO and president of Nickel North Exploration commented: "We had seen good interest in the entire battery metals space especially nickel in recent months. Nickel is truly one of the most critical elements in the EV and energy storage narrative today especially with the dominant switch to electrification. Hawk Ridge, our flagship asset, will benefit tremendously from support by Quebec government and Federal government in battery plants and considerations for critical element grants."
He added: "Lastly, being in Quebec and between two of the world's largest nickel producing assets in Raglan owned by Glencore and Voisey Bay owned by Vale, amidst the Circum-Superior belt, we are anxious to finally have working capital to generate next catalysts for Nickel North stakeholders."
Under the first tranche, the company issued 9,410,000 units at $0.05 per unit. Each unit comprised one common shares in the capital of the company and one full common share purchase warrant. Each full warrant shall be exercisable into one share at an exercise price of $0.075 for two years from the date of issuance date.
If on any five consecutive days on which the TSX Venture Exchange is open for trading occurring after one month has elapsed following the date of issuance of the warrant, the closing sales price of the shares (or the closing bid, if no sales were reported on a trading day) as quoted on the exchange is greater than $0.20, the company may accelerate the expiry date of the Warrants to the 30th day after the date on which it gives notice to the holders by way of a news release.
The company said it will continue with its effort to raise the remaining amount of the private placement on the same terms as the first tranche.
All securities issued under the closing of the first tranche are subject to a four-month hold period.
Because one of the directors of the company subscribed for units in the first franche, such subscription constitutes a "related party transaction". The first tranche has been approved by the independent directors of the company.
Nickel North Exploration is a Canada-based exploration company focused on defining a Cu-Ni-Co-PGE mineral resource at its Hawk Ridge Project in Northern Québec. The board of directors, advisor committee and management team are experienced, successful mine finders.
The property consists of a 50 kilometre long belt of strong magmatic Cu-Ni-Co-PGE occurrences covering 173 square kilometre. The project is located near tidewater. Québec is a mining-friendly jurisdiction. Nickel North Exploration is a conscientious corporate citizen maintains good relations with local Inuit communities and is committed to sustainable development.
Contact the author at jon.hopkins@proactiveinvestors.com