Core Nickel Announces up to $400,000 Flow-Through Private Placement Financing

Rhea-AI Summary

Core Nickel Corp. (CSE: CNCO) has announced a non-brokered private placement offering of up to 8,000,000 flow-through units at $0.05 per unit, aiming to raise up to $400,000. Each unit consists of one flow-through common share and half a warrant, with each whole warrant allowing the purchase of one common share at $0.06 within three years of the closing date.

The proceeds will fund helicopter-borne VTEM and horizontal magnetic gradiometer geophysical surveys on the company's Mel and Odei River properties, as well as support part of the winter drilling program targeting high-priority areas identified by the 2024 VTEM surveys. All securities issued will have a four-month and one-day hold period.

Positive

• Potential to raise up to $400,000 in additional funding
• Funds allocated for advanced geophysical surveys on 100%-owned properties
• Planned winter drilling program to target high-priority areas

Negative

• Potential dilution of existing shareholders due to new share issuance
• Offering price of $0.05 per unit may indicate low valuation of the company

Saskatoon, Saskatchewan--(Newsfile Corp. - September 13, 2024) - Core Nickel Corp. (CSE: CNCO) ("Core Nickel" or the "Company") announces that it proposes to undertake a non-brokered private placement of up to 8,000,000 flow-through units (each, a "FT Unit") at a price of $0.05 per FT Unit for proceeds of up to $400,000, if the offering is fully subscribed (the "Offering"). The FT Units are being offered to qualified purchasers in reliance upon exemptions from prospectus and registration requirements of applicable securities legislation.

Each FT Unit will consist of one flow-through common share of the Company and one half (½) of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one common share of the Company at a price of $0.06 at any time on or before that date which is three years after the closing date of the Offering.

The gross proceeds received from the sale of the FT Units will be used for helicopter-borne Versatile Time-Domain Electromagnetics (VTEM) and horizontal magnetic gradiometer geophysical surveys across its 100%-owned Mel and Odei River exploration properties. Additionally, the funds will support part of the winter drilling program, which will focus on high priority targets identified from the VTEM surveys conducted in 2024.

All securities issued and sold under the Offering will be subject to a hold period expiring four months and one day from their date of issuance in accordance with the policies of the CSE and applicable securities laws.

About Core Nickel

Core Nickel Corp. is a junior nickel exploration company that controls 100% of five properties in the prolific nickel district, the Thompson Nickel Belt (TNB) in Northern Manitoba, Canada. The five properties consist of approximately 27,000 hectares of land that is proximal to existing infrastructure, such as highways, railways, major hydroelectric transmission lines, and operating mills.

Map: Core Nickel's Thompson Nickel Belt Properties

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10145/223372_5ca83033242ad979_001full.jpg

Core Nickel has a large contiguous land package in the northern part of the TNB, situated approximately 16-20 km from the City of Thompson. Core Nickel's northern TNB projects consist of three properties: Mel, Hunter, and Odei River. The Mel property encompasses the Mel deposit, which is characterized by a historical NI-43-101 resource estimate with an indicated resource of 4.3 million tonnes at 0.875% nickel, equating to 82.5 million lbs contained nickel, and a historical inferred resource estimate of 1.0 million tonnes at 0.839% nickel, equating to 18.7 million pounds of contained nickel¹. The target stratigraphy (Pipe Formation) that hosts the Mel deposit, and other deposits in the Thompson Nickel Belt, extend onto the Hunter and Odei River properties and drillhole intersections into the target stratigraphy on the Hunter project have successfully intersected elevated nickel.

The Company also holds two properties in the central TNB near Wabowden: Halfway Lake and Resting Lake. Both properties host the target Pipe Formation associated with known elevated nickel mineralization and are proximal to existing nickel deposits, mills, and other infrastructure.

The Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for this news release is Caitlin Glew, P. Geo., Vice-President Exploration for Core Nickel Corp., who has reviewed and approved its contents.

References

¹ "Technical Report on the Mel Deposit, Northern Manitoba" prepared for Victory Nickel Inc, Shane Naccashian (P. Geo.) of Wardrop Engineering Inc., March 9, 2007

Technical Disclosure

The historical results contained within this news release have been captured from Manitoba Integrated Mining and Quarrying System ("iMaQs") as available and may be incomplete or subject to minor location inaccuracies. Management cautions that historical results were collected and reported by past operators and have not been verified nor confirmed by a Qualified Person but form a basis for ongoing work on the subject properties.

On behalf of the Board of Directors
"Misty Urbatsch"
Misty Urbatsch
CEO, President and Director
Core Nickel Corp.

Contacts:

Misty Urbatsch, CEO and President	General Enquiry
Tel: 306-668-6927	Tel: 306-668-6927
Email: murbatsch@corenickel.com	Email: info@corenickel.com

 

Neither the Canadian Securities Exchange nor its regulations services accept responsibility for the adequacy or accuracy of this release.

Forward-looking information

All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company's control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/223372

FAQ

What is the purpose of Core Nickel's (CNCOF) $400,000 flow-through private placement?

The $400,000 flow-through private placement is intended to fund helicopter-borne VTEM and horizontal magnetic gradiometer geophysical surveys on Core Nickel's Mel and Odei River properties, as well as support part of the winter drilling program.

What are the terms of Core Nickel's (CNCOF) flow-through units in the private placement?

Each flow-through unit is priced at $0.05 and consists of one flow-through common share and half a warrant. Each whole warrant allows the purchase of one common share at $0.06 within three years of the closing date.

How long is the hold period for securities issued in Core Nickel's (CNCOF) private placement?

All securities issued in the private placement will have a hold period of four months and one day from their date of issuance, in accordance with CSE policies and applicable securities laws.

What exploration activities will Core Nickel (CNCOF) conduct with the funds raised?

Core Nickel will use the funds for helicopter-borne VTEM and horizontal magnetic gradiometer geophysical surveys on its Mel and Odei River properties, and to support part of the winter drilling program targeting high-priority areas identified from 2024 VTEM surveys.