Québec Nickel closes second and final tranche of its brokered private placement for aggregate gross
Québec Nickel Corp (CSE:QNI, OTCQB:QNICF) said it has completed the closing of the second and final tranche of its brokered private placement for aggregate gross proceeds of $3,063,280.
The total proceeds raised from both the first and second tranche of the previously announced private placement is $8,695,288.08.
The company said the second tranche saw the issue of a total of: (i) 1,050,000 units, at a price of $0.20 per unit; (ii) 1,797,000 national flow-through (FT) shares at a price of $0.24 per National FT share; and (iii) 9,688,000 Québec flow-through (FT) shares, at a price of $0.25 per Québec FT share.
Each unit is comprised of one common share in the capital of the company and one-half of a common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share at a price of $0.30 for a period of two years from the closing date of the second tranche. The National FT shares and Québec FT shares will qualify as 'flow-through shares' within the meaning of subsection 66(15) of the Income Tax Act (Canada).
All National and QC FT shares issued in the private placement are subject to a four-month hold period expiring on April 30, 2023. All of the units were issued to purchasers’ resident in all provinces of Canada, except Québec, under the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions or in Québec under Regulation 45-106 – respecting Prospectus Exemptions.
The company said it will use the private placement proceeds from the units for general working capital and exploration purposes and will use the proceeds from the National FT Shares and the QC FT Shares exclusively to fund exploration work on its properties located in the Province of Québec.
The company said it is pleased to have received support and participation from its existing shareholders in the private placement and said it would like to thank all participants to the financing.
As a result of the closing of the private placement, there are now 110,842,205 common shares of the company issued and outstanding. The private placement is subject to final acceptance by the Canadian Securities Exchange.
The private placement was led by EMD Financial Inc, acting as sole bookrunner. In connection with the private placement, the company paid an aggregate of $157,796.80 in cash commissions and issued 752,100 non-transferable compensation options. Each compensation option entitles the holder to acquire one common share at a price of $0.30 until December 29, 2024.
Québec Nickel is a mineral exploration company focused on acquiring, exploring, and developing nickel projects in Québec, Canada. The company has a 100% interest in the Ducros Property, consisting of 280 contiguous mining claims covering 15,147 hectares within the eastern portion of the Abitibi Greenstone Belt in Québec.