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TORONTO, April 26,
2022 /CNW/ - Nickel Creek Platinum Corp. (TSX: NCP)
("Nickel Creek" or the "Company") is pleased to
announce that it intends to conduct a drill program during 2022 at
its 100%-owned Nickel Shäw Project (the "Project") located
in the Yukon, Canada and a
proposed non-brokered private placement.
The Company proposes to sell, on a non-brokered private
placement basis, up to approximately 41.2 million units (the
"Units") of the Company at a price of $0.085 per Unit and "flow-through units" (the
"FT Units") at a price to be determined in the context of
the market. The Company is targeting aggregate gross proceeds
of approximately $2.5 million, but
may issue Units and FT Units for aggregate gross proceeds to the
Company of up to approximately $3.5
million (collectively, the "Private Placement").
Each Unit will consist 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
$0.125 for a period of three (3)
years from the date of issuance, subject to adjustment upon certain
customary events. Each FT Unit will consist of one "flow-through"
common share (each, a "FT Share") and one-half of one common
share purchase warrant (each whole FT Share purchase warrant, a
"FT Warrant"), with each FT Warrant exercisable for one
Common Share (each, a "FT Warrant Share") at an
exercise price of $0.125 for a period
of three (3) years from the date of issuance, subject to adjustment
upon certain customary events. The Warrants and FT Warrants, if
exercised in full by the holders thereof, would represent
additional gross proceeds to the Company of approximately
$5.1 million.
On April 20, 2022, the Company
announced that its largest shareholder, Electrum Strategic
Opportunities Fund L.P. ("Electrum"), exercised
approximately 11.4 million warrants for approximately $911,000. Electrum has indicated that it will
invest an additional $100,000 in the
Private Placement for a total investment exceeding $1.0 million.
The net proceeds from the Private Placement will be used to fund
the Company's 2022 drill program (see below), the investigation of
strategic opportunities, ongoing permitting activities and holding
costs at the Project, and for general corporate expenses and
working capital purposes, with any gross proceeds derived from the
sale of any FT Units being used by the Company solely to fund
"Canadian exploration expenses" that will qualify as "flow-through
mining expenditures", each as defined under the Income Tax
Act (Canada).
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 or FT Units. These transactions
will be exempt from the formal valuation and minority shareholder
approval requirements of MI 61-101, as the fair market value of any
Units or FT Units subscribed for by insiders pursuant to the
Private Placement will not exceed 25% of the Company's market
capitalization.
The closing of the Private Placement remains subject to the
approval of the Toronto Stock Exchange and other customary closing
conditions for a transaction of this nature. The Units and FT Units
will be issued on a private placement basis pursuant to exemptions
from prospectus requirements under applicable securities laws. The
Common Shares, the FT Shares, the Warrants and the FT Warrants (and
any Warrant Shares and/or FT 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 and FT Units.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in the United States nor shall there be any sale
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities have not
been and will not be registered under the United States Securities
Act of 1933, as amended (the "1933 Act"), or any state
securities laws and may not be offered or sold in the United States unless registered under the
1933 Act and any applicable securities laws of any state of
the United States or an applicable
exemption from the registration requirements is available.
2022 Drill Program
An exploration program is planned for the 2022 field season to
collect data to facilitate of the completion of a Prefeasibility
Study ("PFS"). This work will include PFS drilling on the
Wellgreen deposit to support conversion of inferred mineral
resources to indicated mineral resources and collect additional
geotechnical and hydrogeological data. Additional information will
also be collected to characterize proposed waste dump and tailings
sites. Further drilling is also planned at the Arch exploration
target to define the extent of mineralization.
On November 29, 2021, the Company
announced complete results of its 2021 drilling and geophysics
program. A series of holes at the Arch Target intersected
massive to semi-massive sulphide overlain by significant
thicknesses of disseminated sulphides. These intervals graded 0.32%
to 1.41% Ni, 0.14% to 0.69% Cu and 0.45 g/t to 2.49 g/t TPM over
12.4m to 23.7m intervals (down-hole core lengths) in nine
holes.
The Company will focus the 2022 field program on the PFS support
work. This program may be adjusted or amended based on the amount
of proceeds received from the Private Placement.
Scientific and Technical
Information
The scientific and technical information disclosed in this news
release was reviewed and approved by Cam
Bell, an independent geologist on a consulting retainer
contract with the Company and a "qualified person" as defined in
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
About Nickel Creek Platinum
Corp.
Nickel Creek Platinum Corp. (TSX: NCP; OTCQB: NCPCF) is a
Canadian mining exploration and development company and its
flagship asset is its 100%-owned Nickel Shäw Project. The Nickel
Shäw Project is a large undeveloped nickel sulphide project in one
of the most favourable jurisdictions in the world, with a unique
mix of metals including copper, cobalt and platinum group metals.
The Nickel Shäw 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 also investigating other opportunities
for shareholder value creation.
The Company is led by a management team with a proven track
record of successful discovery, development, financing and
operation of large-scale projects. Our vision is to create value
for our shareholders by becoming a leading North American nickel,
copper, cobalt and PGM producer.
Cautionary Note Regarding
Forward-Looking Information
This news release includes certain information that may be
deemed "forward-looking information". Forward-looking information
can generally be identified by the use of forward-looking
terminology such as "may", "will", "expect", "intend", "believe",
"continue", "plans" or similar terminology, or negative
connotations thereof. All information in this release, other than
information of historical facts, including, without limitation,
statements relating to the Private Placement and the timing of
closing of the Private Placement, statements with respect to the
Company's exploration programs, drilling, geophysics and sampling
programs (and the results and potential results thereof), and
general future plans and objectives for the Company and the Nickel
Shäw Project, are forward-looking information that involve various
risks and uncertainties. Although the Company believes that the
expectations expressed in such forward-looking information are
based on reasonable assumptions, such expectations are not
guarantees of future performance and actual results or developments
may differ materially from those in the forward-looking
information.
For more information on the Company and the key assumptions,
risks and challenges with respect to the forward-looking
information discussed herein, and about our business in general,
investors should review the Company's most recently filed annual
information form, and other continuous disclosure filings which are
available at www.sedar.com. Readers are cautioned not to place
undue reliance on forward-looking information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
SOURCE Nickel Creek Platinum Corp.