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Canada Nickel Announces US$10 Million Loan Facility and Provides Corporate Update

Dec 21, 2021

Canada Nickel Company Inc. is providing 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.

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