Nighthawk Announces Closing of $27 Million Bought Deal Financing

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The company is pleased to announce that it has completed its previously announced public offering of 8,265,250 units (“Units“) and 11,589,500 flow-through units (the “FT Units“) on a bought deal basis for aggregate proceeds of approximately $27 million (the “Offering“). The Offering reflects the exercise in full of the over-allotment option.  The Offering was led by Sprott Capital Partners LP and included PI Financial Corp., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Haywood Securities Inc., Scotia Capital Inc. and Laurentian Bank Securities Inc. (collectively the “Underwriters“).

Keyvan Salehi, President and CEO commented, “We are very pleased to have completed a successfully upsized financing, bringing our current cash balance to approximately $33 million. This will allow Nighthawk to complete this year’s drilling program in addition to providing a healthy balance to kick-off the 2022 drilling season.”

“The Phase I drill program for this year is expected to be completed towards the end of July, where we then transition to Phase II, which will follow up on the success from Phase I. Year to date we have only released results for 4,048 metres from our Grizzly Bear target within the Colomac Centre. Additional drilling results are expected in short order, and we look forward to providing an update in the near term.”

The Units were sold at a price of $1.15 per Unit and the FT Units were sold at a price of $1.51 per FT Unit. Each Unit is comprised of one non-flow-through common share and half of one common share purchase warrant (each whole warrant, a “Warrant“). Each Warrant shall entitle the holder thereof to acquire one common share at a price of $1.50 until July 7, 2023. Each FT Unit is comprised of one flow-through common share and half of one Warrant, issued on a flow-through basis. The common share and Warrant components of the FT Units will qualify as a “flow-through share” within the meaning of the Income Tax Act (Canada).

The net proceeds from the sale of the Units will be used for general and administrative expenses and the gross proceeds from the sale of the FT Units will be used for exploration expenditures on Nighthawk’s Indin Lake Gold Property, located in Canada’s Northwest Territories. The Company’s drill program is focused on mineral resource expansion opportunities and testing greenfield targets to identify new, near-surface mineralization proximal to the main Colomac Deposit.

The Underwriters were paid a cash commission in connection with the Offering.  The Underwriters were also issued 595,642 broker warrants exercisable until July 7, 2023, at an exercise price equal to $1.15 per common share.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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