Royal Nickel arranges $9-million bought deal
Royal Nickel arranges $9-million bought deal
2018-12-17 08:16 ET - News Release
An anonymous director reports
RNC MINERALS ANNOUNCES $9 MILLION BOUGHT DEAL & CONCURRENT PRIVATE PLACEMENT FINANCING
Royal Nickel Corp. has entered into an agreement with Haywood Securities Inc. as sole bookrunner and lead underwriter, on its own behalf and on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase, on a bought-deal basis, 13,044,000 common shares of the company at a price of 46 cents per common share for gross proceeds to the company of $6,000,240. Clarksons Platou Securities AS will be engaged as selling agent in the Offering.
Concurrent with the Offering, the Underwriters have also agreed to purchase, on a "bought deal" private placement basis, 6,521,000 Common Shares of the Company at a price of $0.46 per Common Share for additional gross process of $2,999,660 (the "Private Placement"). The Private Placement will be sold to Eric Sprott or his designee.
The Company has agreed to grant the Underwriters an over-allotment option (the "Over-Allotment Option") to increase the size of the Offering and the Private Placement by up to an additional 15%, such option being exercisable in whole or in part at any time prior to the date that is 30 days after the closing of the Offering or 48 hours prior to closing of the Private Placement. In the event that the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering and the Private Placement to RNC will be $10,349,885.
The Company intends to use the net proceeds of the Offering and the Private Placement to fund exploration and development expenditures at the Company's Beta Hunt mine and for general corporate purposes.
The Common Shares under the Offering will be offered by way of short form prospectus in each of the provinces of Canada, including Quebec, pursuant to National Instrument 44-101 {A –} Short Form Prospectus Distributions. These Common Shares will not be offered or sold in the United States except under Rule 144A or Regulation D or in such other manner as to not require registration under the United States Securities Act of 1933, as amended.
The Offering and the Private Placement are scheduled to close on or about January 16, 2019 and are subject to certain conditions including, but not limited to, receipt of all regulatory approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.