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Toronto, Ontario–(Newsfile Corp. – November 28, 2022) – Premium Nickel Resources Ltd. (TSXV: PNRL) (“PNRL” or the “Company”) is pleased to announce the closing of its previously announced CAD 7 million loan agreement (“Bridge Loan“) with Pinnacle Island LP, a limited partnership incorporated under the laws of the Province of Ontario (“Lender“) (see press release dated November 21, 2022).
The net proceeds of the bridge loan will be used to finance the Company’s ongoing rehabilitation work programs at its Botswana assets, as its Selebi and Selkirk mines are 100% owned, and for general corporate purposes. The work program at Selebi, PNRL’s flagship asset, is expected to include shaft overhaul, underground redevelopment, as well as additional surface and UG drilling to further validate geotechnical structural controls.
Keith Morrison, CEO commented: “We are evaluating a range of potential financing structures to identify the best long-term capital partners for the Company while optimizing our short-term cost of capital.” This bridge loan allows us to proceed with the planned development of the project, while providing sufficient time for individual financing initiatives to be evaluated and completed in a logical sequence. We value our relationship with Pinnacle Island LP and appreciate their support for our redevelopment of the property in Botswana.”
The bridge loan bears a principal amount of CAD$7 million and bears interest at 10% per annum, compounded monthly and payable on the maturity date of February 22, 2023, provided that the Company may, in its sole discretion, extend the maturity date. date by March 22, 2023 by delivering written notice to the Lender by February 15, 2023. The Company’s obligations under the Bridge Loan will be fully and unconditionally guaranteed by each of the Company’s existing and future subsidiaries. A bridge loan is subject to certain covenants and provisions regarding defaults, repayments and mandatory prepayments that are customary for a loan of this nature.
In connection with the bridge loan, the Company paid CAD $260,000 to the lender and issued to the lender 119,229 common stock purchase warrants, each of which is exercisable to acquire one common share of the Company at a price of CAD 2.04 per share until November 25, 2023. .Warrants and any common shares issuable upon the exercise of such warrants are subject to a statutory four-month hold period under applicable Canadian securities laws.
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, the use of proceeds from the Bridge Loan; the Company’s ability to finance the repayment of the promissory note; 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, the successful negotiation of the documents; capital and operating costs that vary significantly 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 the development of projects; 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.
NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR DISSEMINATION IN THE US
To view the original version of this press release, visit https://www.nevsfilecorp.com/release/145846
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