RE: NI halted - eomAnother financing.
MARCH 13, 2007 - 09:19 ET
Victory Nickel Announces Bought Deal Private Placement
Proceeds to be used to accelerate activities on the Mel, Minago and Lac Rocher projects
TORONTO, ONTARIO--(CCNMatthews - March 13, 2007) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:Ni) (www.victorynickel.ca) announces that it has entered into a "bought deal" private placement financing of 14,285,714 common shares to be issued on a "flow-through" basis (the "Flow-Through Shares") at $0.70 per share for gross proceeds of $10.0 million (the "Financing"). The underwriter will have the option to increase the size of the offering by up to an additional 2,142,857 flow-through shares at the issue price by giving notice to the Company at any time prior to closing, for additional gross proceeds of up to $1.5 million.
The Financing is being completed through a syndicate led by Raymond James Ltd. Closing of the Financing is expected to occur on or about March 29, 2007. Completion of the Financing is subject to receipt of all necessary regulatory approvals.
Victory Nickel plans to use the proceeds primarily to accelerate the activities on its Mel, Minago and Lac Rocher sulphide nickel projects. At Lac Rocher, the Company is finalizing an economic assessment with a view to achieving near-term production by direct shipping high-grade material for processing. Roche Consulting Engineers has been engaged to complete all environmental studies necessary to obtain a Certificate of Authorization for a 50,000 tonne bulk sample. All necessary metallurgical testing and development work is expected to be completed in early 2008 with shipments beginning shortly thereafter. Options for rapid development of the Mel Deposit are also being evaluated.
About Victory Nickel
Victory Nickel Inc. is a Canadian company with over 660 million pounds of in-situ nickel in National Instrument 43-101-compliant measured (154 million pounds) and indicated (511 million pounds) resources in three sulphide nickel projects: Minago and Mel on Manitoba's Thompson nickel belt, and the high-grade Lac Rocher deposit in northwestern Quebec, and an additional 530 million pounds of in-situ nickel in inferred resources. Victory Nickel is focused on becoming a producer by developing its existing properties and evaluating opportunities to expand its asset base.
FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements." All statements, other than statements of historical fact, that address activities, events or developments that Victory Nickel believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current expectations or beliefs of Victory Nickel based on information currently available to Victory Nickel. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Victory Nickel to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Victory Nickel. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to successfully complete financings, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world copper, nickel and/or gold markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates, success of future development initiatives, competition, operating performance of facilities, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from government authorities, and other development and operating risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Victory Nickel disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Victory Nickel believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.