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Pure Nickel Announces the Entering into of an Investment Agreement with Eric Sprott for a Three Million Dollar Investment in Support of a Proposed Merger with Explor Resources
Toronto, Ontario--(Newsfile Corp. - August 22, 2019) - Pure Nickel Inc. (TSXV: NIC) (the "Comp...
About this update from Galleon Gold Corp
[{"type":"text","content":"Pure Nickel Announces the Entering into of an Investment Agreement with Eric Sprott for a Three Million Dollar Investment in Support of a Proposed Merger with Explor ResourcesToronto, Ontario--(Newsfile Corp. - August 22, 2019) - Pure Nickel Inc. (TSXV: NIC) (the \"Company\" or \"Pure Nickel\") is pleased to announce that Eric Sprott, through 2176423 Ontario Ltd. (a corporation beneficially owned by him), has entered into an investment agreement with the Company pursuant to which Mr. Sprott has agreed to subscribe for a convertible debenture of the Company in the principal amount of $3,000,000, subject to certain terms and conditions (the \"Debenture\").The Debenture will have a term of two years and bear interest at a rate of 8% per annum, payable at maturity or on conversion. The Debenture will be convertible into common shares at a price of $0.05 per share for the first 12 months of the term and at $0.10 per share thereafter until maturity. Mr. Sprott shall only be entitled to exercise the Debenture to the extent that Mr. Sprott will own (together with any person acting jointly or in concert with Mr. Sprott), directly or indirectly, not more than 19.9% of the issued and outstanding common shares of the Company immediately following such exercise until such time as shareholders of the Company have approved Mr. Sprott as a control person of the Company in accordance with the requirements of the TSX Venture Exchange (the \"TSXV\"). The Company will pay a commission of 3% cash and 3% shares at $0.05 per share in relation to the Debenture. The issuance of the Debenture is subject to the approval of the TSXV. The Company also announces that today it has signed an Amalgamation Agreement (the \"Agreement\") with Explor Resources Inc. (\"Explor\") to merge the companies on a 46/54 (Pure Nickel/Explor) basis (the \"Transaction\"). In connection with the Transaction, Pure Nickel will issue approximately 95,198,612 common shares of Pure Nickel in exchange for all of the issued and outstanding common shares of Explor. As a result, upon completion of the Transaction, the combined company will have approximately 177,891,951 shares outstanding. Upon completion of the transaction and prior to any conversion of the Debenture by Mr. Sprott, current Explor shareholders will have voting control of the merged Company. If Mr. Sprott converts the en...