11:16:25 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Premium Nickel Resources Ltd
Symbol PNRL
Shares Issued 115,994,343
Close 2022-11-18 C$ 1.95
Market Cap C$ 226,188,969
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Premium Nickel arranges $7-million loan with Pinnacle

2022-11-21 10:49 ET - News Release

Mr. Keith Morrison reports

PREMIUM NICKEL RESOURCES LTD. ANNOUNCES CAD $7 MILLION BRIDGE LOAN

Premium Nickel Resources Ltd. has arranged a $7-million bridge loan financing from Pinnacle Island LP, an arm's-length limited partnership formed under the laws of Ontario, which is evidenced by the issuance of a promissory note by the company to the lender.

The promissory note bears a principal amount of $7-million and interest at a rate of 10 per cent per annum, calculated monthly and payable on Feb. 22, 2023, being the maturity date of the promissory note, provided that the company may, in its sole discretion, extend the maturity date to March 22, 2023, by providing written notice to the lender by Feb. 15, 2023. The obligations of the company pursuant to the promissory note will be fully and unconditionally guaranteed by each of the company's existing and future subsidiaries. The promissory note is subject to certain covenants and provisions on events of default, repayments and mandatory prepayments that are customary for a loan of this nature.

The company intends to use the proceeds from the issuance of the promissory note to finance the working capital of the company.

In connection with the issuance of the promissory note, the company paid a commitment fee of $260,000 and issued 119,229 common share purchase warrants to the lender. Each warrant is exercisable to acquire one common share of the company at a price of $2.04 per common share for a period of one year from date of issue (which will occur on closing when the finances are advanced under the promissory note). The warrants and any common shares issuable on exercise of the warrants are subject to a statutory four-month hold period under applicable Canadian securities laws from the date of issue (which will also occur on closing when the finances are advanced under the promissory note).

The bridge loan and the warrants are subject to the final acceptance of the TSX Venture Exchange.

About Premium Nickel Resources Ltd.

Premium Nickel is a Canadian company dedicated to the exploration and development of high-quality nickel copper plus cobalt resources. Premium Nickel believes that the medium- to long-term demand for these metals will continue to grow through global urbanization and the increasing replacement of internal combustion engines with electric motors. Importantly, these metals are key to a low-carbon future.

Premium Nickel focuses its efforts on discovering world-class nickel sulphide assets in jurisdictions with rule of law that comply with Premium Nickel's values and principles which surpasses the highest industry standards. Premium Nickel is committed to governance through transparent accountability and open communication within its team and its stakeholders.

Premium Nickel maintains a skilled team that has worked on over 100 projects collectively, accumulating over 400 years of resource discoveries, mine development and mine re-engineering experience on projects like Selebi and Selkirk. Premium Nickel's team has on average more than 20 years of experience in every single aspect of mine discovery and development, from geology to operations.

On Jan. 31, 2022, Premium Nickel closed the acquisition of Premium Nickel's flagship asset, the Selebi mine. The Selebi mine includes two shafts (Selebi and Selebi North shafts) and related infrastructure (rail, power and water). Shaft sinking and plant construction started in 1970. Mining concluded in October, 2016, when the operations were placed on care and maintenance due to a failure in the separate and offsite processing facility. The Selebi mine was subsequently placed under liquidation in 2017. The proposed work plan for the Selebi mine includes diamond drilling which is expected to be continuing for up to 18 months, as well as the delivery of a compliant preliminary economic assessment by the end of 2023. During that time, additional metallurgical samples will be collected and sent for more detailed studies. The underground infrastructure at Selebi North will be upgraded to support an underground drilling program, as well as improve health and safety.

In addition, Premium Nickel is evaluating direct and indirect nickel asset acquisition opportunities globally and also (i) holds 100-per-cent interest in the Selkirk mine which was acquired in August, 2022, as well as four adjacent prospecting licences in Botswana; (ii) holds a 100-per-cent interest in the Maniitsoq property in Greenland, which is a camp-scale permitted exploration project comprising 3,048 square kilometres covering numerous high-grade nickel-copper plus cobalt-sulphide occurrences associated with norite and other mafic-ultramafic intrusions of the Greenland norite belt; (iii) holds a 100-per-cent interest in the Post Creek/Halcyon property in Sudbury, Ont., which is strategically located adjacent to the past-producing Podolsky copper-nickel-precious metal sulphide deposit of KGHM International Ltd.; (iv) holds a 100-per-cent ownership of property in the Quetico region near Thunder Bay, Ont.; and (v) is expanding its area of exploration interest into Morocco.

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