TORONTO, ONTARIO--(Marketwire - May 18, 2011) - First Nickel Inc. ("First Nickel" or the "Company") (News - Market indicators) announces that it proposes to complete a private placement offering (the "Offering") of up to $2,000,000 through the issuance of common shares of the Company issued on a flow-through basis at a price of $0.18 per share. The Company has entered into an agreement with Pope & Company Limited (the "Finder") to act as a finder with respect to the Offering.
The net proceeds of the Offering will be used for funding of the Company's exploration programs. The Company has agreed to pay a 7% cash fee to the Finder and issue to the Finder that number of common share purchase warrants (the "Finder's Warrants") equal to 7% of the number of shares issued in the Offering to subscribers introduced to the Company by the Finder. Each Finder's Warrant will be exercisable into one common share of the Company at a price of $0.18 per share for a period of 24 months following closing.
Subject to the approval of the Toronto Stock Exchange, the Company anticipates completing the Offering on or about May 31, 2011.
About First Nickel
First Nickel is a Canadian mining and exploration company. Its current activities are primarily focused on the Sudbury Basin in northern Ontario, the location of the Company's redevelopment stage property (the Lockerby Mine) and two of its exploration properties. First Nickel also has exploration properties in the Timmins region of northern Ontario and the Belmont region of Eastern Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.
Some of the statements contained in this news release are forward-looking statements, such as statements that describe First Nickel's future plans, intentions, objectives or goals, and specifically include but are not limited to the completion of the proposed Offering. Actual results and developments may differ materially from those contemplated by such forward-looking statements depending on, among others, such key factors as negotiating and entering into definitive agreements for the Offering, completion of the Offering, fluctuating metal prices and other factors described in the Company's most recently filed Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com. The forward-looking statements included in this document represent First Nickel's views as of the date of this document and subsequent events and developments may cause First Nickel's views to change. Readers should not place undue reliance on any forward-looking statements.