Canada Nickel closes US$10 Million loan with Auramet International, Inc.
Canada Nickel Company Inc. has closed a secured loan facility with Auramet International, Inc. (“Auramet”) of US$10 million previously announced on September 29, 2022. The proceeds will allow the Company to execute post feasibility study work on permitting and detailed engineering which is advantageous to complete during the coming winter months and allows the Company to remain well-funded as it continues to aggressively advance the project.
The loan will be due January 18, 2023, will carry an interest rate of 1.00% per month, and be subject to a 2% arrangement fee. At closing, Auramet will also receive 325,000 1-year warrants with a strike price of $1.52 per share. 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. The warrants and the underlying shares will be subject to a four month hold period under applicable Canadian securities laws.
About Auramet
Auramet is one of the largest physical precious metals merchants in the world with over $20 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. Auramet purchases tens of millions of ounces of gold, silver and PGMs sourced from a diversified base of mining companies, recycling companies and refineries/smelters. Auramet has also provided term financing facilities in excess of $950 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. In 2022, Auramet received a Gold Metal Sustainability Rating from Ecovadis, a global leader in business sustainability ratings.
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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