Nickel Creek Platinum Corp. (TSX: NCP) (“Nickel Creek” or the “Company”) is delighted to announce a non-brokered private placement to raise up to $1.8 million (the “Private Placement”). The Private Placement will sell Company units (the “Units”) for $0.045 each.
Each Unit will consist of one common share of the Company’s capital (a “Common Share”) and one-half of a common share purchase warrant (a “Warrant”), with each Warrant exercisable for one Common Share (a “Warrant Share”) at $0.08 for three years from the date of issuance, subject to adjustment upon certain customary events.
The Private Placement will cover the Company’s Prefeasibility Study (“PFS”), Nickel Shäw Project permitting and holding costs, general corporate expenses, and working capital.
Nickel Creek is lucky to have Electrum’s support for its future objectives.
The Company’s largest shareholder, Electrum Strategic Opportunities Fund L.P. (“Electrum”), has indicated its intention to backstop up to $1.25 million of the Private Placement, subject to customary conditions and otherwise on the same terms.
Nickel Creek President and CEO Stuart Harshaw said, “Nickel Creek is fortunate to have the continued support of Electrum demonstrating the endorsement for the Company’s plans going forward.”
The Private Placement is projected to close on May 15, 2023, pending Toronto Stock Exchange approval and other standard closing conditions. The Units will be issued privately under securities law exemptions from prospectus requirements. After the Units are issued, the Common Shares, Warrants, and Warrant Shares (where applicable) will be subject to a four-month and one-day statutory hold period.
Electrum and other Company executives will subscribe for Units, making the Private Placement a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Since the fair market value of any Units subscribed for by insiders in the Private Placement will not exceed 25% of the Company’s market capitalization, MI 61-101 will not apply to these transactions.
This news release does not constitute an offer to sell or solicitation to buy the securities in the US or in any place where such offer, solicitation, or sale would be prohibited. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold in the US unless registered or exempt from registration.
Nickel Creek Platinum Corp.
Nickel Creek Platinum Corp.’s 100%-owned Nickel Shäw Project is its flagship asset. The Nickel Shäw Project is a major undeveloped nickel sulphide project in one of the world’s most favorable jurisdictions with a unique mix of copper, cobalt, and platinum group metals.
The Nickel Shäw Project, three hours west of Whitehorse via the paved Alaska Highway, has year-round access to deep-sea shipping ports in southern Alaska.
The Company’s management team has experience discovering, developing, funding, and operating large-scale projects. Becoming a premier North American nickel, copper, cobalt, and PGM producer will create shareholder value.
Forward-Looking Information Warning
This release contains “forward-looking information”. Forward-looking information typically uses terms like “may”, “will”, “expect”, “intend”, “believe”, “continue”, “plans” or negative connotations thereof.
This release contains forward-looking information that involves risks and uncertainties, including statements about the Private Placement, its timing, insider participation, the PFS, and the Company and Nickel Shäw Project’s future plans and objectives.
The Company believes that the expectations contained in such forward-looking information are based on reasonable assumptions, but actual results or developments may differ considerably.
Investors should review the Company’s most recent annual information form and other continuous disclosure filings at www.sedar.com for more information on the key assumptions, risks, and challenges related to the forward-looking information discussed herein and our business. Readers should not rely on forward-looking information. Except for securities rules, the Company does not update forward-looking information.