Canada Nickel Company Inc. (TSX-V: CNC) (OTCQX: CNIKF) is pleased to announce that it has closed its previously-announced investments from Anglo American for aggregate gross proceeds of C$26,154,294.71 whereby Anglo American subscribed for (i) 12,569,235 common shares in the capital of  the Company at C$1.95 per Common Share, and (ii) 952,623 Common Shares at C$1.77 per Common Share. Upon completion of the Anglo American Investment, Anglo American will hold 9.9% of the issued and outstanding Common Shares.

The Company also concurrently closed its “bought deal” prospectus offering for aggregate gross proceeds of C$18,208,763. Under the Offering, the Company sold the following:

• an aggregate of 7,462,500 Common Shares at a price of C$1.77 per Common Share; and
• an aggregate of 1,748,300 Common Shares issued as “flow-through shares” within the meaning of the Income Tax Act (Canada) at a price of C$2.86 per FT Share.

The Offering was completed pursuant to an underwriting agreement dated February 14, 2023, entered into among the Company and a syndicate of underwriters led by Scotiabank, as lead underwriter and sole bookrunner, and including Red Cloud Securities Inc., Cormark Securities Inc., Echelon Wealth Partners Inc., Haywood Securities Inc., and Research Capital Corporation. In connection with the Offering the Underwriters received an aggregate cash commission of 6.0% of the gross proceeds of the Offering. No Commission was paid to the Underwriters in respect of the Anglo American Investment.

An amount equal to the gross proceeds from the issuance of the FT Shares will be used to incur eligible resource exploration expenses which will qualify as (i) “Canadian exploration expenses” (as defined in the Tax Act), and (ii) “flow-through critical mineral mining expenditures” (as defined in subsection 127(9) of the Tax Act). Qualifying Expenditures in an aggregate amount equal to the gross proceeds raised from the issuance of the FT Shares will be renounced to the initial purchasers of the FT Shares with an effective date no later than December 31, 2023. If the Company is unable to renounce such Qualifying Expenditures, or if the Qualifying Expenditures renounced are reduced by the Canada Revenue Agency, the Company will, to the extent permitted by the Tax Act, indemnify each purchaser of FT Shares for any additional taxes payable by such purchaser as a result of the Company’s failure to renounce the Qualifying Expenditures.

The net proceeds raised from the Anglo American Investment and the sale of the Common Shares under the Offering will be used primarily for the exploration and advancement of the Company’s Crawford Nickel-Cobalt Sulphide Project and its other Ontario properties, repayment of the Auramet loan facility and for general working capital purposes.

The Company filed a final short form prospectus in the provinces of Ontario, British Columbia and Alberta, pursuant to National Instrument 44-101 – Short Form Prospectus Distributions to qualify for distribution the Common Shares and FT Shares offered pursuant to the Offering. Copies of the Prospectus and documents incorporated by reference therein are available electronically on SEDAR (www.sedar.com) under Canada Nickel’s issuer profile.

The securities offered in the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Canada Nickel

Canada Nickel is advancing the next generation of nickel-cobalt sulphide projects to deliver nickel and cobalt required to feed the high growth electric vehicle and stainless-steel markets. Canada Nickel has successfully registered and applied for trademarks in various jurisdictions for NetZero Nickel™, NetZero Cobalt™ and NetZero Iron™ and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel provides investors with leverage to nickel and cobalt in low political risk jurisdictions. Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp.