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09:47 AM EDT, 09/09/2016 (MT Newswires) -- Royal Nickel Corporation (RNX.TO) has entered into an agreement with Haywood Securities Inc., as lead underwriter on behalf of a syndicate of underwriters, under which the Underwriters have agreed to purchase, on a bought-deal private placement basis, 17,648,000 units of RNC, at a price of $0.34 per Unit, for gross proceeds of $6,000,320.
Each Unit will consist of one common share and one-half of one common share purchase warrant. Each Warrant will entitle the holder thereof to purchase one additional common share at an exercise price of $0.50 per Warrant Share for a period of 24 months from the date of closing of the Private Placement. RNC has granted the Underwriters an option to purchase up to an additional 2,647,200 Units at the Issue Price, exercisable at any time, in whole or in part, until 48 hours prior to the closing of the Private Placement.
Eric Sprott has agreed to purchase (i) Units in the Private Placement and, (ii) as part of a separate transaction facilitated by the Underwriters (involving secondary market sales of approximately 15 million shares to institutional and high net worth investors), secondary market shares, resulting in ownership of at least 10% of the outstanding shares of RNC on a partially diluted basis.
Royal Nickel's shares were last up 11.6% at $0.385 apiece
Price: 0.380, Change: +0.035, Percent Change: +10.1
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