Nickel & Cobalt

[Ed Monton]

Int'l Nickel Ventures raises $22.2-million with IPO


2006-03-17 08:26 ET - News Release

Mr. James Clucas reports

INTERNATIONAL NICKEL VENTURES CORPORATION CLOSING OF INITIAL PUBLIC OFFERING

International Nickel Ventures Corp. (INV) has closed its initial public offering and has started trading on the Toronto Stock Exchange under the stock symbol NVC.

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 partner and operator Teck Cominco Ltd., a 75-per-cent interest in two advanced-stage nickel laterite deposits, the Santa Fe and the Ipora, in the Goias nickel camp of Brazil. In addition, the company has 100-per-cent ownership in an extensive land package of prospective nickel properties in Goias and Para states.

A total of 18.5 million common shares have been issued at a price of $1.20 per common share, for gross proceeds to the company of $22.2-million. The syndicate of underwriters was co-led by CIBC World Markets Inc. and Dundee Securities Corp., and included GMP Securities LP, which were compensated pursuant to an underwriting agreement dated March 13, 2006. The company has granted the underwriters an overallotment option to purchase up to an additional 2,775,000 common shares at $1.20 per share exercisable for up to 30 days from the date of closing.

As part of the offering, FNX Mining Company Inc. purchased $1-million in common shares and Teck Cominco Ltd. purchased $500,000 in common shares. In addition, immediately following the closing of the IPO, INV's indebtedness to Teck Cominco Ltd. in respect of prior property payments in the amount of $1.35-million (U.S.) was converted into 1,299,800 common shares of INV pursuant to the terms of a promissory note dated Dec. 6, 2005. Following this issuance, there are a total of 31,832,300 common shares of INV issued and outstanding.

The net proceeds of the offering will be used to complete INV's share of the approved 2006 programs on the Santa Fe and Ipora properties as well as on INV's 100-per-cent-owned Goias region and Para state properties. It will also be used to finance regional exploration and prospecting activities, the acquisition of additional mineral properties and for general working capital purposes.

The securities referenced by this news release have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy common shares of International Nickel Ventures in any jurisdiction.

We seek Safe Harbor.