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Class 1 Nickel and Technologies Ltd
Symbol NICO
Shares Issued 99,529,209
Close 2020-11-04 C$ 0.69
Recent Sedar Documents

Class 1 Nickel closes first tranche of placement

2020-11-04 18:16 ET - News Release

Mr. Benjamin Cooper reports

CLASS 1 ANNOUNCES FIRST TRANCHE CLOSING AND CORPORATE UPDATE

Class 1 Nickel and Technologies Ltd. has closed the first tranche of its non-brokered private placement of: (i) flow-through units at an issue price of 80 cents per unit; and (ii) hard dollar units at an issue price of 70 cents per unit.

The company raised $1,202,912 of hard dollar units in this tranche and anticipates closing on approximately $1.8-million of flow-through units on the second tranche, which is expected to close on Nov. 11, 2020. Each flow-through unit will consist of one common share and one-half of one full common share purchase warrant exercisable for 36 months from the closing date with an exercise price of $1.05. Each hard dollar unit will consist of one common share and one full common share purchase warrant exercisable for 36 months from the closing date with an exercise price of $1.00.

David Fitch, a director of the company, through DLFCMS Nominees Pty. Ltd., a corporation which is beneficially owned by him, acquired 400,000 units for a purchase price of $280,000 pursuant to the offering. Prior to the offering, Mr. Fitch beneficially owned 33,671,330 common shares in the company. As a result of the offering, Mr. Fitch beneficially owns and controls 39,671,330 common shares of the company, representing approximately 33.65 per cent of the issued and outstanding common shares on a non-diluted basis. Mr. Fitch has a long-term view of the investment, and may acquire additional securities of the company including on the open market or through private acquisitions, or sell securities of the company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

As a director of the company, Mr. Fitch is considered a related person within the meaning of the Canadian Securities Exchange Policy 1, and his acquisition will be considered to be a related party transaction within the meaning of Multilateral Instrument 61-101 (MI 61-101). The company intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a), 5.5(b) and 5.7(1)(a).

All securities will be subject to a four-month hold period from the closing date, and insiders may be participating for up to 25 per cent of the total issue in the private placement. On this closing, the company paid a total of $19,632.98 in compensation to certain finders along with along with the issuance of 31,047 finders' warrants entitling the holders to one common share for each warrant for a period of 36 months form the date hereof at an exercise price of $1.00.

The company is also pleased to announce the appointment of Omar Gonzalez as the new chief financial officer of the company. The company also wishes to thank Aamer Siddiqui, who has resigned as a director of the company.

Proceeds of the offering will be used to complete the phase 1 work program for the company's Alexo-Dundonald project and thereby satisfy all expenditure requirements on the project, to satisfy drilling commitments under the company's option agreement with Quebec Precious Metals Corp. for the Somanike property located in the Abitibi region of Quebec, for general working capital purposes, and to finance potential future acquisitions.

Class 1 Nickel and Technologies is a mineral resource company focused on the development of its 100-per-cent-owned Alexo-Dundonald project, a portfolio of komatiite-hosted magmatic nickel-copper-cobalt sulphide resources located near Timmins, Ont., as well as developing and exercising the option over the Somanike komatiite-hosted nickel copper project in Quebec, which includes the famous Marbridge mine.

We seek Safe Harbor.

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