Canada Nickel Receives Significant Bridge Loan for Strategic Growth
Canada Nickel Company Secures Bridge Loan to Accelerate Growth
Canada Nickel Company Inc. (TSXV: CNC) (OTCQX: CNIKF) is pleased to announce the successful closure of a US$20 million bridge loan, facilitated by BT Capital Corporation. This vital financing is designed to support the advancement of the Company's flagship Crawford Nickel Sulphide Project. The funds will also be utilized to settle existing loan obligations with Auramet International, Inc.
Advancing the Crawford Nickel Sulphide Project
Mark Selby, the CEO of Canada Nickel, expressed satisfaction in securing the bridge loan facilitated by BT Capital. He stated, "This financing allows us to further progress the Crawford Nickel Sulphide Project, moving us towards a construction decision by year-end 2025. Additionally, we anticipate finalizing the previously announced C$20 million convertible note investment with Taykwa Tagamou Nation soon."
Loan Details and Security
The bridge loan has been issued by BT Strategic Mineral Assets LP, with Baronet Capital as the primary investor. The loan has a maturity date of February 9, 2026, and carries an interest rate of 1.00% per month, along with a 2.5% arrangement fee. In accordance with the terms of the deal, BT Strategic Mineral Assets LP will receive 5 million one-year warrants exercisable at $0.94. It's important to note that these securities are subject to a four-month statutory hold period, adhering to relevant Canadian securities regulations.
Corporate Update: Property Acquisition Strategy
In line with its regional consolidation strategy, Canada Nickel has made a significant acquisition, securing a 100% interest in 9 primary and 23 secondary contiguous mining claims. This acquisition totals 656 hectares (1,621 acres) and will involve the issuance of 70,000 common shares to the vendors, contingent on TSX Venture Exchange approval. Similar to previous arrangements, these shares will also be under a four-month statutory hold period.
Corporate Update: Debt Settlement
The Company has successfully issued 1,050,909 common shares at a deemed price of $0.99 per share. This move is part of settling a portion of the outstanding principal owed to Auramet, amounting to US$750,000 (C$1,040,400). This proactive financial management reflects Canada Nickel's commitment to maintaining a healthy balance sheet.
About BT Capital Corporation
BT Capital Corporation stands as a leader in structured flow-through financings, which benefits clients by reducing market risk. Since inception in 2006, BT Capital has expertly guided clients through more than $1 billion in flow-through share transactions, indicating a robust presence in the financial landscape.
About Baronet Capital
Established in 2023, Baronet Capital is a family office investment firm focusing on impactful and sustainable investments. Their strategic vision emphasizes long-term, secured investments that underline financial stewardship aimed at creating lasting value while addressing community needs.
About Canada Nickel Company Inc.
Canada Nickel is dedicated to leading the next generation of nickel-sulphide projects that meet the growing demand for nickel, primarily driven by the electric vehicle and stainless steel industries. They have applied for trademarks on NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™ as part of their commitment to developing sustainable production practices for these essential metals.
With a focus on leveraging low political risk jurisdictions, Canada Nickel is well-positioned within the Timmins-Cochrane mining camp, boasting its flagship Crawford Nickel-Cobalt Sulphide Project as a centerpiece of its operations.
Frequently Asked Questions
What is the purpose of the US$20 million bridge loan?
The bridge loan will be used to support the Crawford Nickel Sulphide Project's advancement and to settle outstanding obligations with Auramet.
What are the terms of the loan?
The loan matures on February 9, 2026, has an interest rate of 1.00% per month, and includes a 2.5% arrangement fee.
What properties has Canada Nickel acquired recently?
Canada Nickel has acquired a 100% interest in 9 primary and 23 secondary contiguous mining claims, totaling 656 hectares.
How is Canada Nickel addressing its debt?
The Company is settling part of its outstanding principal owed to Auramet through the issuance of 1,050,909 common shares at a price of $0.99 each.
What sustainable practices is Canada Nickel pursuing?
Canada Nickel is focused on developing processes for the production of net zero carbon nickel, cobalt, and iron products, aiming to meet the needs of the electric vehicle market sustainably.
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