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Royal Nickel Corp
Symbol C : RNX
Shares Issued 440,572,898
Close 2019-01-15 C$ 0.46
Recent Sedar Documents

Royal Nickel closes $8.99-million financing

2019-01-16 10:39 ET - News Release

Mr. Rob Buchanan reports

RNC MINERALS CLOSES $9 MILLION BOUGHT DEAL & CONCURRENT PRIVATE PLACEMENT FINANCING

Royal Nickel Corp. has closed its previously announced bought deal and concurrent private placement financing of a total of 19,565,000 common shares of the company at a price of 46 cents per common share for aggregate gross proceeds of $8,999,900.

The financing consisted of an offering of 13,044,000 common shares, sold on a bought deal basis at a price of 46 cents per common share through a syndicate of underwriters, led by Haywood Securities Inc. (and including Laurentian Bank Securities Inc., BMO Capital Markets, Canaccord Genuity Corp. and Macquarie Capital Markets Canada Ltd.) and Red Cloud Klondike Strike Inc. as selling agent, for gross proceeds to the company of $6,000,240 and, concurrent with the offering, the sale, on a bought deal private placement basis, of 6,521,000 common shares of the company at a price of 46 cents per common share for additional gross proceeds of $2,999,660. The private placement has been sold to Eric Sprott's holding company, 2176423 Ontario Ltd.

In connection with the offering, the company has granted the underwriters an overallotment option to purchase up to an additional 1,956,600 common shares at 46 cents per common share, exercisable in whole or in part, at any time and from time to time on or prior to the date that is 30 days following the closing of the offering. If this option is exercised in full, an additional $900,036 in gross proceeds will be raised pursuant to the offering and the aggregate gross proceeds of the offering will be $6,900,276.

As a result of the private placement, Mr. Sprott's holdings increased to more than 10 per cent of the outstanding common shares. On Nov. 15, 2018, Mr. Sprott acquired control over one million common shares such that Mr. Sprott beneficially owned or exercised control or direction over 41,216,042 common shares and, when taking into account the company's prior issuances of common shares, his percentage holdings dropped from approximately 10.1 per cent (as reported in his early warning report dated Sept. 20, 2018) to approximately 9.2 per cent of the then outstanding shares. Mr. Sprott now beneficially owns or exercises control or direction over 47,737,042 common shares, representing approximately 10.2 per cent of the outstanding common shares. Mr. Sprott purchased the common shares for investment purposes. He has a long-term view of the investment and may acquire additional securities either on the open market or through private acquisitions or sell the securities either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. The updated early warning report will appear under the company's profile on SEDAR or may be obtained by calling Mr. Sprott at 416-362-7172 (200 Bay St., Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ont., M5J 2J1).

About Royal Nickel Corp.

Royal Nickel has a 100-per-cent interest in the producing Beta Hunt gold mine located in Western Australia, where a significant high-grade gold discovery -- the Father's Day vein -- was recently made. Royal Nickel has initiated a 40,000-metre drill program on near-mine exploration targets focused on the Father's Day vein area, the results of which will be incorporated into an updated National Instrument 43-101-compliant mineral resource estimate targeted for Q2 2019. Royal Nickel also has a 28-per-cent interest in a nickel joint venture that owns the Dumont nickel-cobalt project located in the Abitibi region of Quebec which contains the second-largest nickel reserve and eighth-largest cobalt reserve in the world. Royal Nickel owns a 35-per-cent interest in Orford Mining Corp., a mineral explorer focused on highly prospective and underexplored areas of Northern Quebec and the U.S. Carolina gold belt.

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