Canada Nickel Raises $34 Million From Flow Through Financing, Clearing Up Questions Over Agnico Eagle Stake
Canada Nickel Company (TSXV: CNC) provided clarity this morning to Friday’s announcement by Agnico Eagle (TSX: AEM) that it had taken a major 12% stake in the company.
While Agnico’s move to take a 12.0% interest in the company via a private purchase of units was viewed as a positive, investors were left confused over the weekend as to what units they actually acquired. Agnico had disclosed that they purchased 19.6 million flow through units from a third party, yet Canada Nickel had not disclosed it was raising funds.
As it turns out, Canada Nickel was in fact raising funds under a flow through offering that was not previously disclosed. Under the terms of the financing, the company sold 19.6 million units of the company at $1.77 per flow through unit, with each unit containing on flow through common share and 0.35 of a purchase warrant. The offering raised gross proceeds of $34.7 million for Canada Nickel.
Agnico Eagle then subsequently acquired those units for $1.18 a piece from the initial purchasers.
READ: Agnico Eagle Takes 12% Stake In Canada Nickel For $23.1 Million
“We are very pleased to welcome Agnico Eagle, one of the largest mining companies in Canada, as an investor in Canada Nickel. Agnico Eagle has a long operating history in the Abitibi region, deep technical expertise and a track record of operating success with its core open pit, bulk-tonnage, gold assets in the Abitibi at both Canadian Malartic and Detour Lake,” commented Mark Selby, CEO of Canada Nickel.
The company also disclosed it expects to close offtake initiatives prior to January 18, 2024, when a US$12 million loan from Auramet comes due.
Canada Nickel last traded at $1.14 on the TSX Venture.
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