Canada Nickel gets US$10M loan facility
by CM Staff
The transaction is subject to customary closing conditions, including TSX Venture Exchange approval.
TORONTO — Canada Nickel Company has obtained a US$10 million secured loan facility with Aurament which is expected to close on or before January 5, 2022, according to a company statement.
Canada Nickel stated that the loan is due exactly four months from the January date, and it will bear an interest rate of one per cent per month. The loan also has an arrangement fee of two per cent of the total loan amount as well as the issuance of 250,000 two-year warrants at a strike price of $3.94 per share on the closing date.
“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 in a statement.
The update from Canada Nickel also explained that the 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.