North American Nickel (NAN-V) Update - aheadoftheherd.com
Latest NAN-V PP News Release - Message 29527464
North American Nickel Inc. has co-ordinated a private placement of up to 28,484,848 common shares of the company at a price of 33 cents per share for aggregate gross proceeds of up to $9.4-million.The net proceeds of the financing will be used to finance the company's 2014 exploration and zone drilling programs at its 100-per-cent-owned Maniitsoq nickel sulphide project in southwestern Greenland and to provide additional working capital.
Sentient Executive GP IV Ltd. (for the general partner of Sentient Global Resources Fund IV LP (collectively, Sentient) intends to invest its pro rata amount in the financing in order to maintain its 41.3-per-cent position in the capital of the company. Sentient, which is an insider and a related party of the company, beneficially owns, or exercises control or direction over, 58,127,098 common shares of the company, or approximately 41.3 per cent of the issued and outstanding common shares of the company, and no warrants.
VMS Ventures Inc. intends to invest $1.25-million in the financing. VMS, which is an insider and a related party of the company, beneficially owns, or exercises control or direction over, 33,589,704 common shares (or approximately 23.9 per cent of the issued and outstanding common shares) of the company and warrants entitling VMS to acquire up to an additional 5,882,352 common shares of the company. Richard Mark, the chairman, chief executive officer and a director of the company, is the chairman, CEO and a director of VMS.
Due to the fact that Sentient and VMS, which are each insiders and related parties of the company, will subscribe for shares, their subscriptions under the financing will be related-party transactions for the purposes of Multilateral Instrument 61-101. The Sentient and VMS subscriptions will be completed in reliance on an available exemption from the formal valuation requirement of MI 61-101 provided in paragraph (b) of Section 5.5 of MI 61-101 and an available exemption from the minority shareholder approval requirement of MI 61-101 provided in paragraph (a) of Section 5.7 of MI 61-101. Neither the fair market value of the shares issued nor the consideration paid for the shares pursuant to the Sentient and VMS portions of the private placement will exceed 25 per cent of the company's market capitalization.
Sentient and VMS, to the company's knowledge, are each making their own investment decisions and are acting independently, and not jointly and in concert.
Shares acquired by the placees will be subject to a hold period of four months plus one day from the date of closing of the private placement in accordance with applicable securities legislation.
The closing of the private placement will occur as soon as the applicable closing conditions, including the approval of the TSX Venture Exchange have been satisfied. Finders' fees may be paid in connection with a small portion of the financing. |
