Canada Nickel issues shares to Taykwa Tagamou FN and acquires more claims
Canada Nickel Company Inc. has extended the repayment date of the US$12 million loan facility announced September 18, 2023, with Auramet International, Inc. (“Auramet”) from January 18, 2024, to February 16, 2024. The loan will carry an interest rate of 1.25% per month for the extension period.
Canada Nickel has also entered into seven purchase and sale agreements with arm's length vendors pursuant to which the Company has agreed to acquire mining claims in the Timmins, Ontario region in exchange for the issuance by the Company of an aggregate of 723,000 common shares of the Company and the payment by the Company of an aggregate of $67,760 in cash. Under one of the agreements, the Company agreed to grant to the vendor a 2.0% net smelter returns royalty on the applicable claims. The Company has the exclusive option at any time until the property enters into commercial production to repurchase one quarter of the royalty (being a 0.5% net returns interest) from the vendor for $1,000,000. Under four other agreements, the Company agreed to grant to the vendors thereunder royalties equaling a 2.0% net returns interest on the applicable claims. The Company has the exclusive option at any time and from time to time to repurchase one half of each such royalty (being a 1.0% net returns interest) from the vendors for a cash purchase price of $1,000,000 per royalty.
Canada Nickel has further agreed to issue 100,000 common shares to Taykwa Tagamou Nation ("TTN") pursuant to the terms of the exploration agreement between Canada Nickel and TTN (the "TTN Exploration Agreement") and 100,000 common shares to Apitipi Anicinapek Nation ("AAN") pursuant to the terms of the exploration agreement between Canada Nickel and AAN (together with the TTN Exploration Agreement, the "Exploration Agreements"), in each case in respect of the Company's regional properties surrounding its Crawford project. The Exploration Agreements continue important relationships through which Canada Nickel recognizes and respects the Aboriginal and Treaty rights of TTN and AAN while engaged in exploration activities on the Company's properties. The Exploration Agreements also each provide for the Company to make certain cash payments to TTN and AAN based on the cost of the Company's exploration program on the subject properties.
Each of the foregoing issuances of common shares are subject to the prior approval of the TSX Venture Exchange, and the shares will be subject to a four-month hold period under Canadian securities laws from the date of the respective issuances.
The Company also wishes to confirm that, in connection with the private placement of flow-through units announced in the Company's news release dated January 2, 2024, the Company has agreed to pay each of Scotiabank and Deutsche Bank a cash fee of $520,380 (being an amount equal to 1.5% of the gross proceeds of the offering).
About Auramet
Auramet is one of the largest physical precious metals merchants in the world with over US$20 billion in annual revenues and which provides a full range of services to all participants in the precious metals supply chain. Auramet is a private company established in 2004 by seasoned professionals who have assembled a global team of industry specialists with over 350 years combined industry experience. Their business consists of three main activities: physical metals trading, metals merchant banking (including direct lending) and project finance advisory services. The company 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 2022 it purchased over 5 million ounces of gold, 78 million ounces of silver and 3.9 million ounces of PGMs, and has provided term financing facilities in excess of US$1 billion to date. Auramet is looking to grow its capital investment business in equity, royalties and streams in the precious metals and battery-related metals mining space. Auramet is proud to have been awarded a Gold Medal for its ESG commitment by EcoVadis, the most trusted provider of ESG ratings with a network of more than 90,000 rated companies. For more information on Auramet, please visit www.auramet.com.
About Canada Nickel
Canada Nickel Company Inc. is advancing the next generation of nickel-sulphide projects to deliver nickel required to feed the high growth electric vehicle and stainless-steel markets. Canada Nickel Company has applied in multiple jurisdictions to trademark the terms NetZero Nickel™, 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 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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