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Premium Nickel Resources Announces CAD $7 Million Bridge Loan
Toronto, Ontario--(Newsfile Corp. - November 21, 2022) - Premium Nickel Resources Ltd. (TSXV: PNRL) ("PNRL" or the "Company") is pleased to announce a CAD 7 mil
About this update from Nexmetals Mining Corp.
[{"type":"text","content":" Toronto, Ontario--(Newsfile Corp. - November 21, 2022) - Premium Nickel Resources Ltd. (TSXV: PNRL) (\"PNRL\" or the \"Company\") is pleased to announce a CAD 7 million bridge loan financing (the \"Bridge Loan\") from Pinnacle Island LP, an arm's-length limited partnership formed under the laws of the Province of Ontario (the \"Lender\"), which is evidenced by the issuance of a promissory note by the Company to the Lender (the \"Promissory Note\"). The Promissory Note bears a principal amount of CAD 7 million and interest at a rate of 10% per annum, calculated monthly and payable on February 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 February 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 (collectively, the \"Guarantors\"). 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 CAD 260,000; and issued 119,229 common share purchase warrants (the \"Warrants\") to the Lender. Each Warrant is exercisable to acquire one common share of the Company (the \"Common Shares\") at a price of CAD 2.04 per Common Share for a period of one year from date of issue (which will occur on closing when the funds 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 funds 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. PNRL is a Canadian company dedicated to the exploration and development of high-quality nickel copper + cobalt resources. PNRL believes that the medium to long-term demand for these ...