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Toronto, Ontario–(Newsfile Corp. – November 29, 2022) – Premium Nickel Resources Ltd. (TSXV: PNRL) (“PNRL” or the “Company”) is pleased to announce the release of its unaudited condensed financial statements and notes thereto as of and for the three and nine month periods ended September 30, 2022 (“Financial reports“), and related management discussions and analysis. Both documents are available for review on SEDAR (www.sedar.com) under the Company’s profile.
The financial statements are the first financial statements issued by the Company following the reverse takeover transaction (“RTO“) completed on August 3, 2022 (see press release dated August 3, 2022), resulting in the combination of North American Nickel Inc.ON N“) and the private corporation Premium Nickel Resources (“PNRC“).
Pursuant to the RTO, NAN acquired all outstanding shares of PNRC. However, since the shareholders of PNRC acquired control of the Company through the exchange of their PNRC shares for NAN shares, the acquisition of PNRC was accounted for in the financial statements as a “reverse takeover” of the Company under International Financial Reporting Standards (“IFRS “). Accordingly, the consolidated statements of income and cash flows reflect the results of operations and cash flows of PNRC, the legal subsidiary, for the quarters ended September 30, 2022 and 2021, combined with those of NAN, the legal parent, from effective date of acquisition from 3 August 2022 to 30 September 2022, in accordance with IFRS for “reverse acquisitions”.
The fair value of the consideration deemed to have been paid by PNRC for all issued and outstanding securities of NAN, based on the closing price on the last trading day prior to the announcement of the RTO transaction, was $104,219,294. The fair value of the NAN assets deemed acquired by PNRC under the RTO was $28,843,728 (after making an impairment charge on the Maniitsok assets as described below). The resulting difference of $75,375,567 is treated as an acquisition cost and is recorded as a non-cash expense based on earnings.
Prior to the closure of the RTO, Maniitsok’s assets were recorded at a book value of $36,692,516 on NAN’s books. Management believes that facts and circumstances exist that suggest this amount exceeds its fair value. As a result, management has determined that the carrying amount of Maniitsok’s assets should be reduced by $20,343,794, with the effect that its carrying amount as of September 30, 2022 is $16,348,722, as reflected in the financial statements. This estimate is based on historical drilling results and management’s future exploration plans for the Maniitsok property.
Following the entry into force of the RTO, the Company’s principal business activity is the exploration and development, through its wholly owned subsidiaries, of its 100% owned mineral properties located in Botswana, principally the Selebi property formerly operated by BCL Limited. The financial statements reflect this focus. During the nine months ending September 30, 2022, the company’s recorded amount of exploration and evaluation assets attributable to 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 + cobalt resources. PNRL believes that medium to long-term demand for these metals will continue to grow through global urbanization and the increasing replacement of internal combustion engines by electric motors. Importantly, these metals are key to a low-carbon future.
PNRL focuses its efforts on discovering world-class nickel sulfide assets in jurisdictions with a rule of law consistent with PNRL’s values and principles that exceed the highest industry standards. PNRL is committed to governance through transparent accountability and open communication within our team and our stakeholders.
PNRL maintains a skilled team that has worked on over 100 projects together, accumulating over 400 years of resource discovery, mine development and mine reengineering experience on projects such as Selebi and Selkirk. PNRL’s team has an average of more than 20 years of experience in every aspect of mine discovery and development, from geology to operations.
On January 31, 2022, PNRL closed the acquisition of PNRL’s flagship asset, the Selebi mine. The Selebi mine includes two shafts (Selebi shaft and Selebi north) and associated infrastructure (railway, electric power and water). Shaft sinking and plant construction began in 1970. Mining was completed in October 2016 when the works were put on care and maintenance due to a breakdown in a separate and out-of-town processing facility. The Selebi mine was subsequently placed into liquidation in 2017. The proposed work plan for the Selebi mine includes diamond drilling which is expected to be ongoing for up to 18 months, as well as the delivery of a compliant PEA by the end of 2023. During that time, additional metallurgical samples will be collected and sent for more detailed studies. Underground infrastructure in the north of Selebi will be upgraded to support the 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) has a 100% interest in the Selkirk open pit mine which was acquired in August 2022, as well as four adjacent exploration licenses in Botswana, (ii) ) has a 100% interest in the Maniitsok property in Greenland, which is a permitted camp-level exploration project covering 3,048 square kilometers covering numerous high-grade nickel-copper + cobalt-sulphide occurrences associated with norite and other mafic-ultramafic intrusions of the Greenland Norite Belt; (iii) has a 100% interest in the Post Creek/Halcion property in Sudbury, Ontario, which is strategically located near KGHM International Ltd.’s former copper-nickel sulphide and precious metals site. (iv) owns 100% of the property in the Quetico region near Thunder Bay, Ontario; and (v) expands its area of research interest to Morocco.
ON BEHALF OF THE BOARD OF DIRECTORS
Keith Morrison
Chief Executive Officer
Premium Nickel Resources Ltd.
For more information about Premium Nickel Resources Ltd., please contact:
Jaclyn Ruptash
Vice President for Business Development
+1 (604) 770-4334
Note Regarding Forward-Looking Statements:
This release contains “forward-looking information” within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as of the date of this release. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied in such forward-looking information. Forward-looking information in this release includes, but is not limited to, management’s future exploration plans for the Maniitsok property; the company’s focus on exploration and development of its 100% owned mineral assets located in Botswana; impairments or write-offs; the aims, objectives or future plans of the Company including the proposed Selebi mine operation plan. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs that vary materially from estimates; preliminary nature of metallurgical test results; delays in obtaining or failure to obtain necessary governmental, environmental or other project approvals; uncertainties regarding the availability and cost of financing required in the future; changes in capital markets; inflation; commodity price fluctuations; delays in project development; other risks involved in the mineral exploration and development industry; and those risks listed in the Company’s public records on SEDAR (www.sedar.com) under the Company’s issuer profile. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this press release are reasonable, undue reliance should not be placed on such information, which applies only as of the date of this release, and no guarantee can be made. that such events will occur within the time frames disclosed or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Neither TSKS Venture Exchange nor its regulation service provider (as that term is defined in TSKS Venture Exchange’s policies) accepts responsibility for the adequacy or accuracy of this announcement.
To view the original version of this press release, visit https://www.nevsfilecorp.com/release/146152
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