16:23:36 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Premium Nickel Resources Ltd
Symbol PNRL
Shares Issued 115,994,343
Close 2022-11-29 C$ 1.59
Market Cap C$ 184,431,005
Recent Sedar Documents

Premium Nickel files Q3 results

2022-11-29 18:45 ET - News Release

Mr. Keith Morrison reports

PREMIUM NICKEL RESOURCES LTD. ANNOUNCES FILING OF THIRD QUARTER FINANCIAL STATEMENTS AND RELATED MD&A

Premium Nickel Resources Ltd. has released its unaudited condensed financial statements and notes thereto as at and for the three- and nine-month periods ended Sept. 30, 2022, and related management's discussion and analysis. Both documents are available for viewing on SEDAR under the company's profile.

The financial statements are the first financial statements released by the company following the reverse takeover transaction completed on Aug. 3, 2022 (see news release dated Aug. 3, 2022), which resulted in the combination of publicly traded North American Nickel Inc. (NAN) and privately owned Premium Nickel Resources Corp. (PNRC).

Pursuant to the RTO, NAN acquired all of the outstanding shares of PNRC. However, because the shareholders of PNRC obtained control of the company through the exchange of their shares of PNRC for shares of NAN, the acquisition of PNRC has been accounted for in the financial statements as a reverse takeover of the company under international financial reporting standards. Consequently, the consolidated statements of income and loss and cash flows reflect the results from the operations and cash flows of PNRC, the legal subsidiary, for the quarters ended Sept. 30, 2022, and 2021, combined with those of NAN, the legal parent, from the effective acquisition date of Aug. 3, 2022, to Sept. 30, 2022, in accordance with IFRS for reverse takeovers.

The fair value of the consideration deemed to have been paid by PNRC for all the issued and outstanding securities of NAN, based on the closing price on the last trading day prior to announcement of the RTO transaction, was $104,219,294. The fair value of the assets of NAN deemed to have been acquired by PNRC under the RTO was $28,843,728 (after giving effect to an impairment charge for the Maniitsoq property as described below). The resulting difference of $75,375,567 is treated as a cost of acquisition and has been recorded as a non-cash charge against earnings.

Prior to the closing of the RTO, the Maniitsoq property was recorded at a carrying amount of $36,692,516 on the books of NAN. Management believes that facts and circumstances exist to suggest that this amount exceeds its fair value. As a result, management determined the carrying amount of the Maniitsoq property should be impaired by $20,343,794, with the effect that its carrying amount as at Sept. 30, 2022, is $16,348,722 as reflected in the financial statements. This valuation is based on historical drilling results and management's future exploration plans for the Maniitsoq property.

After giving effect to the RTO, the company's principal business activity is the exploration and development, through its wholly owned subsidiaries, of its 100-per-cent-owned mineral properties located in Botswana, principally the Selebi assets formerly operated by BCL Ltd. The financial statements reflect this focus. During the nine months ended Sept. 30, 2022, the recorded amount of the company's exploration and evaluation assets attributable to the Selebi mines increased by $22,227,238.

About Premium Nickel Resources Ltd.

PNRL is a Canadian company dedicated to the exploration and development of high-quality nickel, copper and cobalt resources. PNRL 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.

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

PNRL maintains a skilled team which 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. PNRL'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, PNRL closed the acquisition of PNRL'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 off-site 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, PNRL is evaluating direct and indirect nickel asset acquisition opportunities globally, and also: (i) holds a 100-per-cent interest in the open-pit 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 interests into Morocco.

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