FPX Nickel Announces Closing of Long-Term Debt Refinancing
September 04 2019 - 7:30AM
FPX Nickel Corp.
(FPX-TSX.V) (“
FPX
Nickel” or the “
Company”) is pleased to
announce that, further to its announcement on March 25, 2019, it
has closed the amended and new loan agreements to extend the
maturity of its long-term debt from September 4, 2020 to September
4, 2022 and September 4, 2025. The Company’s debt refinancing
is underpinned by a C$4 million loan (the “
Bradshaw
Loan”) from Peter Bradshaw, the Company’s Chairman and
largest shareholder, on terms consistent with the Company’s arm’s
length long-term debt.
On closing of the new and amended loan agreements, the Company’s
long-term debt is as follows:
- Bradshaw Loan with principal of C$4 million and accrued
interest due on September 4, 2025.
- Loan from an arm’s length shareholder (the “Private
Shareholder Loan”) with principal of US$2.5 million and
accrued interest due on September 4, 2022.
The Loans bear a headline interest rate of 7.5%, of which 2%
will be paid currently, on a semi-annual basis, and the remaining
5.5% is payable at the respective maturity dates of the
Loans. The Private Shareholder Loan is secured by a fixed and
specific charge against the Company’s Decar mineral claims.
There are no covenant provisions associated with Loans, which may
be repaid, in whole or in part, prior to the respective maturity
dates and without penalty, at the Company’s option. The terms
of the Company’s amended and new loan agreements are more fully
described in the Company’s news release dated March 25,
2019.
About FPX Nickel Corp.
FPX Nickel Corp. is focused on the exploration and development
of the Decar Nickel-Iron Alloy Project, located in central British
Columbia, and other occurrences of the same unique style of
naturally occurring nickel-iron alloy mineralization known as
awaruite. For more information, please view the Company’s website
at www.fpxnickel.com or contact Martin Turenne, President and CEO,
at (604) 681-8600.
On behalf of FPX Nickel Corp. "Martin Turenne" Martin Turenne,
President, CEO and Director
Forward-Looking StatementsCertain of the
statements made and information contained herein is considered
“forward-looking information” within the meaning of applicable
Canadian securities laws. These statements address future events
and conditions and so involve inherent risks and uncertainties, as
disclosed in the Company's periodic filings with Canadian
securities regulators. Actual results could differ from those
currently projected. The Company does not assume the obligation to
update any forward-looking statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
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