Toronto, Ontario--(Newsfile Corp. - July 22, 2019) - Pure Nickel Inc. (TSXV: NIC) (the "Company" or "Pure Nickel") announces that it has completed the final tranche of a non-brokered private placement ("Financing"). Upon closing of the final tranche of the Financing, the Company issued 500,000 units ("Unit") at a price of $0.05 per Unit for gross proceeds of $25,000. Each Unit consists of one common share ("Common Share") and one-half of one Common Share purchase warrant ("Warrant"), each Warrant entitling the holder to purchase one additional Common Share at an exercise price of $0.12 for a period of two years after closing.
All securities issued in conjunction with the Financing are subject to a statutory four month hold period from the date of issue. No commissions, broker fees or finders' fees will be paid in conjunction with the closing of the Financing. Aggregate gross proceeds from the first and second tranche closings of the Financing totaled $141,667.
Proceeds from the Financing will be used for general corporate purposes and advancement of exploration plans for the Neal Property.
A director of the Company participated in the Financing for a total of 500,000 Units. The participation by the director is deemed to be a "related party transaction" as defined under Multilateral Instrument 61-101-Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Financing is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 (pursuant to subsections 5.5(a) and 5.7(a)) as the fair market value of the Units distributed to, nor the consideration received from, interested parties exceeded 25% of the Company's market capitalization. The Company did not file a material change report at least 21 days prior to the closing of the Financing as participation of insiders had not been confirmed at that time.
About Pure Nickel
Pure Nickel is a mineral exploration and development company. Since the start of 2019, the Company has made strategic steps to expand its focus to include gold and silver exploration. The addition of the Neal Project in Idaho, in partnership with Eric Sprott, provides the Company with an advanced stage gold exploration project that is expected to continue to return positive exploration results and holds the potential to be advanced to production.
FOR FURTHER INFORMATION:
Pure Nickel Inc.
R. David Russell
Chairman and CEO
T. (416) 644-0066
Forward Looking Statements
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, expectations, plans, and objectives of Pure Nickel are forward-looking statements that involve various risks. The following are important factors that could cause Pure Nickel's actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world-wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future exploration activities and cash flows, and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. Pure Nickel undertakes no obligation to update such forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.
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.
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