Nickel North Exploration (TSX-V:NNX) Corp said it has closed the second and final tranche of the private placement previously announced on April 5, 2022, in the amount of $37,500, and has announced a new flow-through private placement for gross proceeds of up to $200,000.
Proceeds from the issuance of the FT units will be used for field exploration programs on the Hawk Ridge Ni-Cu-PGE-Co project in 2022.
In the final tranche of the previously announced private placement, the company issued 750,000 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 being exercisable into one share at an exercise price of $0.075 for two years from the date of issuance date, subject to the following acceleration clause.
READ: Nickel North Exploration closes first tranche for $470,500 of previously announced $1 million private placement
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 (or if the shares are not listed on the exchange, such stock exchange, quotation system or market on which such shares are listed) is greater than $0.20, the company may accelerate the expiry date of the warrants to the 30th day after the date on which the company gives notice to the holders by way of a news release.
All securities issued under the closing of the final tranche are subject to a four-month hold period.
New non-brokered private placement
Nickel North Exploration also announced a new non-brokered private placement offering of up to 2,666,666 flow-through (FT) units at $0.075 each.
Each FT unit will consist of one share and one non-transferable share purchase FT warrant. Each whole FT warrant will entitle the holder to purchase one Share at $0.10 per share. The FT warrants will have an expiry date of two years from the date of issuance, subject to acceleration.
The FT warrants will be callable by the company should the daily volume-weighted average trading price of the common shares of the company on the exchange equal or exceed $0.20 for a period of five consecutive trading days, at any time during the period (i) beginning on the date that is one month from the closing date of the FT private placement, and (ii) ending on the date the FT warrants expire. Following a FT warrant call trigger, the company may give notice by way of a news release to the holders that any FT warrant that remains unexercised by the holder shall expire thirty days following the date on which the call notice is given.
The FT private placement is subject to regulatory approval. All securities to be issued are subject to a four-month hold period under applicable Canadian securities laws. All funds are denominated in Canadian dollars. A finder's fee commensurate with regulatory policies may be paid if applicable.
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 property consists of a 50 kilometer long belt of strong magmatic Cu-Ni-Co-PGE occurrences covering 173 square kilometers. The project is located near tidewater. Québec is a mining-friendly jurisdiction.
Contact the author at jon.hopkins@proactiveinvestors.com