NICKEL CREEK PLATINUM ANNOUNCES CLOSE OF FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT
Summary
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES/TORONTO, May 11, 2023 /CNW/ - Nickel Creek Platinum Corp. (TSX: NCP) ("Nickel Creek" or the "Company") is pleased to announce that it has closed the first tranche ("Tranche 1") of its previously announced non-brokered private placement (the "Private Placement") pursuant to which the Company is issuing a total of 31,503,656 units ("Units") for gross proceeds of approximately $1.4 million.The Units were priced at $0.045 with each Unit consisting of one common share of the capital of the Company (each, a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"), with each Warrant exercisable for one Common Share (each, a "Warrant Share") at an exercise price of $0.08 for a period of three (3) years from the date of issuance, subject to adjustment upon certain customary events.The net proceeds from the Private Placement will be used to fund the Companys completion of the Prefeasibility Study ("PFS"), ongoing permitting activities and holding costs at its 100%-owned Nickel Sh\xe4w Project, and for general corporate expenses and working capital purposes.In connection with the Private Placement, the Companys largest shareholder, Electrum Strategic Opportunities Fund L.P. ("Electrum"), has acquired 27,777,778 Units or approximately 88% of Tranche 1 of the Private Placement for a total investment of $1.25 million.Stuart Harshaw, President and Chief Executive Officer of Nickel Creek, commented: "The participation of Electrum demonstrates significant endorsement for our flagship Nickel Sh\xe4w Project from the Companys largest shareholder. "All Common Shares and Warrants issued under the Private Placement are subject to a statutory hold period of four months and one day from the date of closing.The second tranche of the Private Placement is expected to occur during the week of May 23, 2023 and remains subject to the approval of the Toronto Stock Exchange and other customary closing conditions for a transaction of this nature. The Units will be issued on a private placement basis pursuant to exemptions from prospectus requirements under applicable securities laws. The Common Shares and the Warrants (and any Warrant Shares, as applicable) will be subject to a statutory hold period of four months and one day from the date of issuance of the Units.Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Private Placement would constitute a "related party transaction" as Electrum (and certain other insiders of the Company) will subscribe for Units. The Nickel Sh\xe4w Project has exceptional access to infrastructure, located three hours west of Whitehorse via the paved Alaska Highway, which further offers year-round access to deep-sea shipping ports in southern Alaska.The Company is led by a management team with a proven track record of successful discovery, development, financing and operation of large-scale projects.