SOUTHERN ARC MINERALS INC. UPDATE ON STRATEGIC INVESTMENT IN CANADA NICKEL CORP.
Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to announce that Canada Nickel Corp. ("Canada Nickel”) has completed its founders round seed financing for proceeds of $8.65 million. This includes Southern Arc's purchase of 15.3 million common shares for proceeds of $5.355 million. Southern Arc currently owns 15.3 million of Canada Nickel's 34,115,256 total issued and outstanding common shares.
Canada Nickel has paid $5 million to Diamondex Resources Ltd. and earned a 10% interest in the James Bay Lowlands Nickel Project (the "Property”). Canada Nickel can earn a total of 51% interest in the Property by:
Southern Arc has received a NI 43-101 report on the Property which has been approved by the TSX Venture Exchange and filed on Sedar as a schedule to Southern Arc's information circular for its annual and special meeting.
Southern Arc's investment in Canada Nickel was unanimously approved by the independent directors of the Company. While Southern Arc's investment in Canada Nickel does not require the Company to prepare a valuation or to seek shareholder approval under the policies of the TSX Venture Exchange or Multilateral Instrument 61-101, an annual and special meeting has been called for September 30, 2008 at which shareholders will have an opportunity to ratify the investment in Canada Nickel. The Company has completed its analysis of the analogous provisions of MI 61-101 and will permit all shareholders, including John Proust, to vote on the Canada Nickel private placement. Southern Arc is recommending that shareholders vote in favor of ratifying this investment.
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