First Atlantic Nickel Corp. (TSXV:
FAN) (OTCQB:
FANCF) (FSE:
P21) (“
First
Atlantic” or “
FAN” or the
“
Company”) is pleased to announce
that subject to the final approval of the TSX Venture Exchange (the
“
Exchange”), the Company has closed a non-brokered
private placement led by a strategic investor, of 9,928,571
flow-through shares (the “
FT Shares”) issued at a
price of C$0.21 per FT Share, for aggregate gross proceeds of
$2,084,999.91 (the “
Offering”). Each FT Share will
consist of one common share of the Company issued as a
“flow-through share” (within the meaning of subsection 66(15) of
the Income Tax Act (Canada).
Highlights:
- The Company’s
2024 exploration program is now fully funded with a planned 5,000m
drilling at the Atlantic Nickel Project to target numerous zones of
awaruite nickel mineralization along a 30km ultramafic nickel
trend.
- Financing of
approximately $2.1M at C$0.21 per share represents a 58% premium to
the 10-day Volume Weighted Average Price ("VWAP").
- Post-closing, a
strategic investor holds a 9.98% equity stake in First Atlantic,
secured by an investor rights agreement (the "Investor Rights
Agreement") granting the right to maintain ownership in future
financings.
- No warrants,
finders fees, or commissions were payable in connection with the
Offering.
Funds raised from the Offering will fully fund
the Company's 2024 exploration programs, which will include
geophysical surveys, surface exploration, and a planned 5,000-meter
drilling campaign at the Atlantic Nickel Project. These activities
will target high-priority zones along the extensive 30-kilometer
ultramafic nickel trend. The summer's geophysical surveys and
surface exploration will play a vital role in identifying the most
promising initial drill targets for the planned multi-zone drilling
program.
The Offering was led by a strategic investor who
now holds a 9.98% equity position in First Atlantic. The FT Shares
issued pursuant to the Offering were issued at a price of C$0.21
per share, which represented a 58% premium to the Company’s 10
VWAP. Upon closing the Offering, the Company and the strategic
investor also entered into an Investor Rights Agreement which will
grant the investor the right to participate in subsequent equity
financings to maintain their current interest of up to 9.98%.
Adrian Smith, Chief Executive Officer of First
Atlantic, commented, "We are thrilled to secure this substantial
investment, which will enable the Company to fully fund its 2024
exploration program at the Atlantic Nickel Project and unlock the
immense discovery potential along the 30km district-scale awaruite
nickel trend."
The Atlantic Nickel Project's size, location,
and geological potential, including the unique awaruite form of
nickel mineralization, has the potential to be a source of clean
and sustainable nickel. Awaruite, a naturally occurring nickel
alloy, allows for simpler, more sustainable, and economic
processing compared to traditional nickel deposits, reducing
dependence on foreign countries for processing. The project's
strategic location also has the potential to provide enhanced
security to critical mineral supply chains in Europe and North
America necessary for the production of stainless steel, electric
vehicles, and clean energy technologies.
Figure 1: Atlantic Nickel Project highlights
The proceeds of the Offering will be used by the
Company to incur eligible “Canadian exploration expenses” that will
qualify as “flow-through mining expenditures” as such terms are
defined in the Income Tax Act (Canada) (the “Qualifying
Expenditures”) related to the Company’s properties located
in Newfoundland and Labrador on or before December 31, 2025. All
Qualifying Expenditures will be renounced in favour of the
subscribers effective December 31, 2024.
All securities issued pursuant to the Offering
are subject to an Exchange hold period and a four month plus one
day hold period pursuant to applicable securities laws of Canada,
which will expire on October 21, 2024.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any securities in the
United States or any other jurisdiction. No securities may be
offered or sold in the United States or in any other jurisdiction
in which such offer or sale would be unlawful prior to registration
under U.S. Securities Act of 1933 or an exemption therefrom or
qualification under the securities laws of such other jurisdiction
or an exemption therefrom.
First Atlantic Nickel Corp. shares trade in
Canada on the TSX Venture Exchange under the symbol "FAN", in the
United States on the OTCQB under the symbol “FANCF” and on several
German exchanges, including Frankfurt and Tradegate, under the
symbol "P21".
Investors are invited to sign up for the
official FAN (First Atlantic Nickel) List found
at www.fanickel.com and can follow First Atlantic Nickel on
the following social media.
https://twitter.com/FirstAtlanticNi
https://www.facebook.com/firstatlanticnickel
https://www.linkedin.com/company/firstatlanticnickel/
For more information:
First Atlantic Nickel Relations Robert
Guzman
Tel: +1 844 592 6337 Rob@fanickel.com
http://www.fanickel.com
Disclosure
Adrian Smith, P.Geo., is a qualified person as
defined by NI 43-101. The qualified person is a member in good
standing of the Professional Engineers and Geoscientists
Newfoundland and Labrador (PEGNL) and is a registered professional
geoscientist (P.Geo.). Mr. Smith has reviewed and approved the
technical information disclosed herein.
About First Atlantic Nickel
Corp.
First Atlantic Nickel Corp.
(TSXV: FAN) (OTCQB: FANCF) (FSE: P21) is a Canadian mineral
exploration company that owns 100% of the Atlantic Nickel Project,
a large scale significant nickel awaruite project in Newfoundland
and Labrador, Canada. By eliminating the need for smelting, nickel
in the form of awaruite reduces dependence on foreign entities of
concern for both supply and processing, thereby strengthening
supply chain security. In 2022, the US Government designated nickel
as a critical mineral, highlighting its importance to the nation's
economy and security.
The Atlantic Nickel Project is a special asset
due to its unique combination of size, location, proximity to
infrastructure, and the presence of awaruite. By developing this
domestic awaruite nickel project, FAN aims to enhance supply chain
security for the stainless steel and electric vehicle industries in
the USA, Canada, and Europe. The Company's strategic location and
focus on awaruite nickel position it to play a key role in meeting
the growing demand for responsibly sourced nickel in these
sectors.
The Company is committed to responsible
exploration, environmental stewardship, and working closely with
local communities to create sustainable economic opportunities.
With its experienced team and the project's significant potential,
the Company is well-positioned to contribute to the future of the
nickel industry and the global transition to a cleaner, more secure
energy future.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-looking statements:
This news release may include "forward-looking
information" under applicable Canadian securities legislation. Such
forward-looking information reflects management's current beliefs
and are based on a number of estimates and/or assumptions made by
and information currently available to the Company that, while
considered reasonable, are subject to known and unknown risks,
uncertainties, and other factors that may cause the actual results
and future events to differ materially from those expressed or
implied by such forward-looking information. Forward-looking
information in this news release includes, but is not limited to,
the use of the proceeds from the Offering, the Company’s
objectives, goals or future plans, statements, and estimates of
market conditions. Readers are cautioned that such forward-looking
information are neither promises nor guarantees and are subject to
known and unknown risks and uncertainties including, but not
limited to, general business, economic, competitive, political and
social uncertainties, uncertain and volatile equity and capital
markets, lack of available capital, actual results of exploration
activities, environmental risks, future prices of base and other
metals, operating risks, accidents, labour issues, delays in
obtaining governmental approvals and permits, and other risks in
the mining industry. Additional factors and risks including
various risk factors discussed in the Company’s disclosure
documents which can be found under the Company’s profile on
http://www.sedarplus.ca. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results may vary
materially from those described herein as intended, planned,
anticipated, believed, estimated or expected.
The Company is presently an exploration stage
company. Exploration is highly speculative in nature, involves many
risks, requires substantial expenditures, and may not result in the
discovery of mineral deposits that can be mined profitably.
Furthermore, the Company currently has no reserves on any of its
properties. As a result, there can be no assurance that such
forward-looking statements will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such statements.
[1]
https://www.usgs.gov/news/national-news-release/us-geological-survey-releases-2022-list-critical-minerals
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/38a18ff6-7c8e-4edd-a9c4-c35fabe886dc
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