Canada Nickel Launches C$4.97 Million Flow-Through Private Placement

Canada Nickel (TSX-V: CNC | OTCQB: CNIKF) has launched a non-brokered private placement of up to 2,400,000 flow-through shares priced at C$2.07 per share, targeting gross proceeds of up to C$4.97 million. Proceeds will fund eligible resource exploration expenses qualifying under Canadian and Ontario tax frameworks, with expenditures to be incurred by December 2027 and renounced to initial purchasers effective no later than December 2026. The offering is scheduled to close on or around June 10, 2026, subject to TSX Venture Exchange listing approval and all required regulatory conditions.

Company Overview

Canada Nickel is advancing the Crawford Nickel-Cobalt Sulphide Project, a 100%-owned flagship asset located in the Timmins-Cochrane nickel district of Ontario. The company has published eight separate resources across the Timmins Nickel District and is pursuing the development of processes to produce net-zero carbon nickel, cobalt, and iron products. Canada Nickel has applied to trademark the terms NetZero Nickel, NetZero Cobalt, and NetZero Iron in multiple jurisdictions.

Offering Terms

Canada Nickel is raising up to C$4.97 million through a non-brokered private placement of up to 2,400,000 common shares qualifying as flow-through shares under subsection 66(15) of the Income Tax Act (Canada). The shares are priced at C$2.07 per share and are being offered across all provinces of Canada pursuant to applicable exemptions from prospectus requirements under Canadian securities laws. All securities issued under the offering are subject to a hold period expiring four months and one day from the closing date.

Use of Proceeds & Qualifying Expenditures

Gross proceeds will be applied to eligible resource exploration expenses falling across three qualifying categories: Canadian exploration expenses as defined under subsection 66.1(6) of the Income Tax Act (Canada); flow-through critical mineral mining expenditures as defined under subsection 127(9) of the same Act; and eligible Ontario critical mineral exploration expenditures within the meaning of subsection 103(4.1) of the Taxation Act, 2007 (Ontario).

Qualifying expenditures in an aggregate amount no less than gross proceeds are to be incurred or deemed incurred on or before December 31, 2027. Those expenditures will be renounced to initial purchasers of the flow-through shares with an effective date no later than December 31, 2026.

Crawford & Timmins District Context

The Crawford Nickel-Cobalt Sulphide Project, Canada Nickel's 100%-owned flagship asset located in the Timmins-Cochrane nickel district, is in the final stage of permitting and is expected to reach a decision by early summer. Continued progress on government funding has also been reported. Proceeds from the placement will support continued exploration across the broader Timmins Nickel District, where eight separate resources have been published to date, and a ninth is targeted for later this quarter.

Chief Executive Officer Mark Selby commented on the financing and its strategic context:

"With Crawford in the final stage towards a permitting decision expected by early summer and continued progress on government funding, this flow-through financing will allow us to continue to advance our Timmins Nickel District, where we have now published eight separate resources with a ninth coming later this quarter. We believe that the scale of the Timmins Nickel District makes us unique among nickel developers and positions us to benefit from the continued improvement in global nickel markets and renewed interest in nickel from investors."

Canada Nickel has applied to trademark the terms NetZero Nickel, NetZero Cobalt, and NetZero Iron across multiple jurisdictions and is pursuing the development of processes to enable the production of net-zero carbon nickel, cobalt, and iron products.

Closing Conditions & Timeline

The offering is scheduled to close on or around June 10, 2026. Closing is conditional on the listing of the flow-through shares on the TSX Venture Exchange and receipt of all necessary regulatory approvals, including approval of the TSX-V.

Next Steps

Three near-term milestones follow from the offering. The placement is targeted to close around June 2026. A ninth resource publication across the Timmins Nickel District is expected later this quarter. A permitting decision at Crawford is anticipated by early summer.