First Nickel Inc.

First Nickel Inc.

May 04, 2007 12:12 ET

First Nickel Inc. Closes C$17,250,000 Financing

TORONTO, ONTARIO--(CCNMatthews - May 4, 2007) - First Nickel Inc. (TSX:FNI) (the "Company") is pleased to announce that further to its news release of April 5, 2007, it has closed a C$17,250,000 private placement.

A syndicate of underwriters led by Desjardins Securities Inc. and including MGI Securities Inc., Paradigm Capital Inc., and Raymond James Ltd. (collectively the "Underwriters") has brokered the subscription of 15,000,000 common shares, including the Underwriters' option, at a price of C$1.15 per common share.

Common shares issued with respect to the private placement will be subject to a hold period until September 5, 2007 in accordance with applicable Canadian securities laws.

The net proceeds of the private placement will be used to repay Series A Debentures which mature on June 1, 2007 and for general working capital purposes.

William Anderson, President and CEO comments "This is a very positive milestone in FNI's short history. Later this month we will retire all of our short term debt, resulting in a clean balance sheet, and with the cash flow from our Lockerby Mine we will be able to maintain an aggressive exploration and development program on our pipeline of projects".

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 producing property (the Lockerby Mine) and four of its exploration properties. First Nickel also has two exploration properties in the Timmins region of northern Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.

This news release may contain forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such forward-looking statements are made as at the date of this news release, and the company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.

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