First Nickel Inc.

First Nickel Inc.

November 12, 2010 11:26 ET

First Nickel Announces Completion of Its C$28,749,953 Equity Offering and Announces US$3,171,059 Debt for Equity Exchange

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2010) -


First Nickel Inc. ("First Nickel" or the "Company") (TSX:FNI) announces that it has completed its offering of 239,582,948 units ("Units") of the Company at a price of C$0.12 per Unit for total gross proceeds of C$28,749,953 (the "Offering"), which includes 31,249,615 Units issued on exercise of the agents' option to increase the size of the Offering (which represented an increase of approximately 15% of the Offering). Each Unit is comprised of one common share in the capital of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share at a price of C$0.17 until November 12, 2012. Paradigm Capital Inc., as lead, and Raymond James Ltd. acted as agents for the Offering.

Purchasers under the Offering included West Face Long Term Opportunities Global Master L.P., which purchased 91,000,000 Units for proceeds of C$10,920,000, and Resource Capital Fund V L.P. which purchased 41,666,666 Units for proceeds of C$5,000,000.

In addition, Resource Capital Fund IV L.P. exchanged US$3,171,059 (C$3,375,910) of its US$5,000,000 (C$5,323,000) outstanding bridge loan (the "Bridge Loan") for 28,132,580 Units based on an exchange rate of C$1.0646/US$1.00 and a price of C$0.12 per Unit in connection with the Offering. The remaining US$1,828,940 (C$1,947,090) of the Bridge Loan is expected to be exchanged (for the remaining 16,225,753 Units) upon the Company obtaining the requisite shareholder approval (either by written shareholder approval or at a special meeting to be held as soon as possible after the date hereof).

The net proceeds of the Offering will be used for re-commissioning and development of the Company's Lockerby Mine, detailed engineering studies of the Lockerby Mine and for general corporate purposes.

Mr. William Anderson, President and Chief Executive Officer of the Company, stated "I am pleased that investors' demand for First Nickel's offering resulted in the Company raising over C$28 million and that we can now focus on advancing the re-commissioning work at the Lockerby Mine and completing the Company's previously announced project debt financing."

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States or to "U.S. persons", as such term is defined in Regulation S promulgated under the 1933 Act, absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

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 and the launch of the full development program on Lockerby Depth Project. 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, completion of additional financing initiatives, maintaining operating and exploration teams, continued care and maintenance of the Lockerby Mine, 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 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.

Contact Information