TORONTO, Dec. 21, 2021 /CNW/ - Canada Nickel
Company Inc. ("Canada Nickel" or "The Company")
(TSXV: CNC) (OTCQX: CNIKF) is pleased to provide an update on its
discussions with strategic investors and financing activities.
"Canada Nickel is engaged in ongoing and constructive
discussions with strategic investors which have been extended into
the new year. The Company continues to aggressively advance the
Crawford Nickel Sulphide Project and has arranged a US$10 million loan facility from Auramet which
will ensure the Company remains well-funded through the first
quarter when the Company expects to conclude its strategic investor
process," said Mark Selby, Chair and
CEO of Canada Nickel.
"Canada Nickel has made significant strides over the past year
by continuing to deliver promising drilling results, delivering a
robust Preliminary Economic Assessment, demonstrating significant
improvements to our metallurgical performance, and consolidating a
Timmins nickel district. We look
forward to maintaining our momentum into 2022 in a market that is
demonstrating a strong interest in both nickel sulphide assets and
low-carbon projects," Mr. Selby continued.
Loan Facility
The Company has arranged a US$10 million secured loan facility with Auramet
which is expected to close on or before January 5, 2022. The loan is due
April 5, 2022, and will carry an
interest rate of 1% per month and has an arrangement fee of 2% of
the loan amount and the issuing of 250,000 2-year warrants at a
strike price of $3.94 per share on
the closing date.
This transaction is subject to customary closing conditions,
including TSX Venture Exchange approval. The loan will be subject
to such terms and conditions including certain specified positive
and negative covenants that are customary for a transaction of this
nature.
About Auramet
Auramet is one of the largest physical
precious metals merchants in the world with over $22 billion in annual revenues and provides a
full range of services to all participants in the precious metals
chain, from extraction and production to manufacturing and
consumption. Auramet is a private company established in 2004 by a
team who had worked previously together since 1989. Their business
is comprised of three main activities: physical metals trading,
metals merchant banking and advisory. Auramet 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 2020, it purchased over
6 million ounces of gold, 70 million ounces of silver and 3.2
million ounces of PGMs sourced from a diversified base of over 75
mining companies, 15 recycling companies and 20 refineries/smelters
(with none comprising more than 5%). Auramet has also provided term
financing facilities in excess of $850
million to date in the mining sector and is looking to grow
its capital investment business in the precious metals and
battery-related metals mining space.
About Canada Nickel
Canada Nickel Company Inc. is
advancing the next generation of nickel-cobalt sulphide projects to
deliver nickel and cobalt required to feed the high growth electric
vehicle and stainless steel markets. Canada Nickel Company has
successfully registered and applied for trademarks in various
jurisdictions for NetZeroNickel™, NetZero Cobalt™ and 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 and cobalt
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.
Contact:
Mark Selby,
Chair and 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 metallurgical results, the timing and
results of the feasibility study, the results of Crawford's PEA,
including statements relating to net present value, future
production, estimates of cash cost, proposed mining plans and
methods, mine life estimates, cash flow forecasts, metal
recoveries, carbon footprint and sequestration levels, estimates of
capital and operating costs, timing for permitting and
environmental assessments, realization of mineral resource
estimates, capital and operating cost estimates, project and life
of mine estimates, ability to obtain permitting by the time
targeted, size and ranking of project upon achieving production,
economic return estimates, the timing and amount of estimated
future production and capital, operating and exploration
expenditures and potential upside and alternatives. 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. The PEA
results are estimates only and are based on a number of
assumptions, any of which, if incorrect, could materially change
the projected outcome. There are no assurances that Crawford will
be placed into production. Factors that could affect the outcome
include, among others: 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 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.
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SOURCE Canada Nickel Company Inc.