TORONTO, July 9, 2024
/CNW/ - Canada Nickel Company Inc. ("Canada
Nickel" or the "Company") (TSXV: CNC) (OTCQX: CNIKF)
today announced that it has closed a secured loan facility with
Auramet International, Inc. ("Auramet") of US$15 million previously announced on
June 24, 2024.
The loan is due January 9, 2025,
carries an interest rate of 1.00% per month, and is subject to a
2.5% arrangement fee. At closing, Auramet also received
750,000 1-year warrants with a strike price of $1.42 per common share. The loan is subject to
such terms and conditions including certain specified positive and
negative covenants that are customary for a transaction of this
nature. The warrants and the underlying shares are subject to a
four month hold period under applicable Canadian securities laws.
The Company expects to use the proceeds from the loan for working
capital purposes.
About Auramet
Auramet is one of the largest physical precious metals merchants
in the world with over US$20 billion
in annual revenues and which provides a full range of services to
all participants in the precious metals supply chain. Auramet is a
private company established in 2004 by seasoned professionals who
have assembled a global team of industry specialists with over 350
years combined industry experience. Their business consists of
three main activities: physical metals trading, metals merchant
banking (including direct lending) and project finance advisory
services. The company has built a consistently successful and
prominent franchise in the metals space on the back of an
experienced management team that has proven to be innovative and
capable of delivering the highest quality service to participants
in the sector. In fiscal year 2023 it purchased over 7 million
ounces of gold, 126 million ounces of silver and 3 million ounces
of PGMs, and has provided term financing facilities in excess of
US$1 billion to date. Auramet is
looking to grow its capital investment business in equity,
royalties and streams in the precious metals and battery related
metals mining space. Auramet is proud to have been awarded a Gold
Medal the past two years for its ESG commitment by EcoVadis, the
most trusted provider of ESG ratings with a network of more than
90,000 rated companies. For more information on Auramet, please
visit www.auramet.com.
About Canada Nickel Company
Canada Nickel Company Inc. is advancing the next generation of
nickel-sulphide projects to deliver nickel required to feed the
high growth electric vehicle and stainless steel markets. Canada
Nickel Company has applied in multiple jurisdictions to trademark
the terms NetZero Nickel™, NetZero Cobalt™, NetZero Iron™ and is
pursuing the development of processes to allow the production of
net zero carbon nickel, cobalt, and iron products. Canada Nickel
provides investors with leverage to nickel in low political risk
jurisdictions. Canada Nickel is currently anchored by its 100%
owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart
of the prolific Timmins-Cochrane mining camp. For more information,
please visit www.canadanickel.com.
For further information, please contact:
Mark Selby
CEO
Phone: 647-256-1954
Email: info@canadanickel.com
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain information that may
constitute "forward-looking information" under applicable Canadian
securities legislation. Forward looking information includes, but
is not limited to, the use of proceeds from the loan, the ability
of the Company to deliver nickel required to feed the high growth
electric vehicle and stainless steel markets, and the development
of processes to allow the production of net zero carbon nickel,
cobalt, and iron products. Readers should not place undue reliance
on forward looking statements. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Canada
Nickel to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. There are no assurances that Crawford
will be placed into production. Factors that could affect the
outcome include, among others: inability to repay the loan or
comply with the covenants set out in the loan agreement; the actual
results of development activities; project delays; inability to
raise the funds necessary to complete development; general
business, economic, competitive, political and social
uncertainties; future prices of metals or project costs could
differ substantially and make any commercialization uneconomic;
availability of alternative nickel sources or substitutes; actual
nickel recovery; conclusions of economic evaluations; changes in
applicable laws; changes in project parameters as plans continue to
be refined; accidents, labour disputes, the availability and
productivity of skilled labour and other risks of the mining
industry; political instability, terrorism, insurrection or war;
delays in obtaining governmental approvals, necessary permitting or
in the completion of development or construction activities;
mineral resource estimates relating to Crawford could prove to be
inaccurate for any reason whatsoever; additional but currently
unforeseen work may be required to advance to the feasibility
stage; and even if Crawford goes into production, there is no
assurance that operations will be profitable. Although Canada
Nickel has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results to differ from those
anticipated, estimated or intended. Forward-looking statements
contained herein are made as of the date of this news release and
Canada Nickel disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by
applicable securities laws. Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
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SOURCE Canada Nickel Company Inc.