International Nickel Ventures announces financing
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
TORONTO, Ontario, Canada. April 27, 2007 — International Nickel Ventures Corporation (“INV”) (TSX:INV) announced today that it has entered into an agreement to sell, on a bought deal basis, 9,700,000 units (“Units”) at a price of C$1.75 per Unit (the “Offering”) to CIBC World Markets Inc. and Canaccord Adams (collectively, the “Underwriters”), for gross proceeds to INV of C$16,975,000. Each Unit will consist of one common share (a “Common Share”) in the capital of INV and one-half of one Common Share purchase warrant. Each whole Common Share purchase warrant (a “Warrant”) will entitle the holder to acquire one additional Common Share at a price of C$2.25 for a period of 18 months from the closing of the Offering.
In addition, the Underwriters have been granted an option (the “Over-allotment Option”) to sell up to that number of additional Common Shares and half-Warrants equal to 15% of the Units sold pursuant to the Offering for market stabilization and over-allotment purposes. The Over-allotment Option may be exercised at any time, in whole or in part, until that date which is 30 days following the closing date.
Concurrent with the Offering, INV will complete a private placement (the “Concurrent Private Placement”) with FNX Mining Company Inc. (“FNX”) on the same terms as the Offering to maintain its pro rata interest in INV of approximately 9.03%. Also, Teck Cominco Limited (“Teck”) has the right (the “Teck Right”) to purchase Units on the same terms as the Offering to maintain its pro rata interest in INV of approximately 6.38%. FNX has indicated its intention to purchase that portion of the Units, subject to the Teck Right, that Teck does not purchase. Accordingly, the aggregate size of the Offering (before exercise of the Over-allotment Option), Concurrent Private Placement and Teck Right will be approximately C$20,067,834
The Offering, the Concurrent Private Placement and the Teck Right are subject to the approval of the Toronto Stock Exchange and all necessary regulatory approvals. Closing of the Offering and the Concurrent Offering is expected on or about May 18, 2007.
Proceeds of the Offering, the Concurrent Private Placement and the Teck Right will be used by INV for (i) exploration and related work on INV’s Santa Fé / Iporá property and other mineral exploration properties located in Brazil; and (ii) for general corporate and working capital purposes.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
INV is a Canadian mineral resource company focused on the acquisition, exploration and development of nickel projects in Brazil. Its primary asset is an option to acquire, with 73% partner and operator Teck Cominco, a 75% interest in two advanced-stage nickel laterite deposits, Santa Fé and Iporá, in the Goiás nickel camp of Brazil. In addition, INV has 100% ownership in an extensive land package of prospective nickel properties in Goiás, Para and Tocantins States which now totals over 455,000 hectares. Before giving consideration to the Offering and Concurrent Offering, INV has outstanding approximately 34.8 million Common Shares.
This press release contains certain forward-looking statements. These forward-looking statements are subject to variety of risks and uncertainties beyond INV’s ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release there is no guarantee that the financing will be completed. For a more detailed discussion of such risks and other factors, refer to INV’s filing with Canadian securities regulators available on www.sedar.com or INV’s website at www.nickelventures.com.