Continental Nickel Announces Closing of Brokered $5.0 Million Private Placement Financing
MAY 12, 2010 - 14:24 ET
TORONTO, ONTARIO--(Marketwire - May 12, 2010) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Continental Nickel Limited (TSX VENTURE:CNI) ("Continental" or the "Company") announces the closing of a brokered private placement for gross proceeds of $5,000,400 with a syndicate of agents led by Paradigm Capital Inc. and including Canaccord Genuity Corp. (the "Agents"). A total of 8,334,000 Units were sold, each Unit consisting of one common share (the "Common Shares") of the Company and one-half of one Common Share purchase warrant for aggregate gross proceeds of $5,000,400 (the "Offering").
Each Unit was sold at $0.60 and each whole Common Share purchase warrant entitles the holder to purchase one Common Share for $0.80 until May 12, 2012. In connection with the Offering the Agents were paid a cash commission and received 208,350 broker warrants, each exercisable into one Common Share for $0.60 until May 12, 2012. The securities issued pursuant to the Offering are subject to a 4 month statutory hold period from closing.
The Company intends to use the net proceeds of the Offering for further exploration of its Nachingwea nickel project in Tanzania as well as for general corporate activities.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities 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 state securities laws and may not be offered or sold within the United States or to U.S. Persons as defined under applicable securities laws unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Continental Nickel
Continental Nickel Limited is focused on the exploration, discovery and development of nickel sulphide deposits in prospective, but under‐explored regions globally. Current projects include its 70% controlling interest in the Nachingwea project in Tanzania, where NI 43‐101 Mineral Resources have been defined, and an option joint venture on the St. Stephen project in New Brunswick, Canada. Providing for the above noted offering, Continental Nickel has 38,943,664 shares issued and outstanding (45,806,514 on a fully‐diluted basis) and remains well funded with C$14 million in the treasury. The Company trades on the TSX Venture Exchange under the symbol CNI.
On behalf of Continental Nickel Limited
Craig MacDougall, President & Chief Executive Officer
CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, future plans and objectives of Continental Nickel Limited, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Continental Nickel Limited's expectations are the risks detailed herein and from time to time in the filings made by Continental Nickel Limited with securities regulators.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Craig MacDougall, P. Geo.
President and CEO
(905) 815-0532 (FAX)
Copyright 2012 © Continental Nickel Limited