Canada Nickel Closes Previously Announced US$15 Million Loan Facility with Auramet International Inc.
Canada Nickel Company Inc. (TSXV: CNC) (the Company or Canada Nickel) is pleased to announce the closing of its previously announced secured loan facility (the Loan Facility) with Auramet International LLC for up to US$15 million.
The Loan Facility provides Canada Nickel with the financial flexibility to advance its flagship Crawford Nickel-Cobalt project located in Timmins, Ontario, Canada. The proceeds from the Loan Facility will primarily be used for ongoing development work at the Crawford project, including resource expansion drilling, metallurgical testing, and feasibility studies.
Mark Selby, Chair and CEO of Canada Nickel, expressed his satisfaction with the closing of the Loan Facility, stating, We are pleased to have closed this Loan Facility with Auramet as another important milestone in continuing to advance the Crawford Nickel-Cobalt project. This financing provides us with additional flexibility to move the project forward while we continue to systematically advance our Crawford Nickel-Cobalt project to deliver a Feasibility Study in 2022 with robust economics that fully utilize the low carbon footprint of the project.
The Loan Facility is structured in two tranches, with the first tranche of US$7.5 million drawn at closing. The second tranche of US$7.5 million is available to be drawn at any time prior to December 31, 2023, subject to certain conditions.
As part of the Loan Facility, Canada Nickel has issued to Auramet a total of 121,739 common shares of the Company. These shares are subject to a hold period expiring four months and one day from the date of issuance. The Loan Facility is secured by a first-ranking security interest over all of Canada Nickel’s assets and contains customary financial and non-financial covenants.
Canada Nickel is focused on advancing its Crawford Nickel-Cobalt project, which has the potential to become a significant North American nickel and cobalt producer. The project benefits from its location in Timmins, a well-established mining camp with excellent infrastructure and access to skilled labor.
The closing of the Loan Facility with Auramet International marks a significant step for Canada Nickel as it strengthens its financial position and underscores its commitment to advancing the Crawford project towards production. With the support of strategic financing and a clear development plan, Canada Nickel is well-positioned to capitalize on the growing demand for nickel and cobalt in the electric vehicle and clean energy sectors.
As Canada Nickel continues to progress its Crawford project, investors and stakeholders can look forward to further updates on the development and potential of this promising nickel-cobalt asset in the heart of Ontario’s mining region.