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Premium Nickel Resources Announces Closing of Previously Announced Equity and Debt Financing Package of $21.6 Million
Toronto, Ontario--(Newsfile Corp. - December 14, 2023) - Premium Nickel Resources Ltd. (TSXV: PNRL) (the "Company") is pleased to announce the closing of its pr
About this update from Nexmetals Mining Corp.
[{"type":"text","content":" Toronto, Ontario--(Newsfile Corp. - December 14, 2023) - Premium Nickel Resources Ltd. (TSXV: PNRL) (the \"Company\") is pleased to announce the closing of its previously-announced equity and debt financing package of approximately $21.6 million, comprised of: Brokered Private Placement: $15,760,040 pursuant to a \"best efforts\" private placement offering of 13,133,367 common shares of the Company (the \"Common Shares\") at a price of $1.20 per Common Share (the \"Offering\"). Amended Term Loan: $5,882,353 loan pursuant to an amendment to the terms of the Company's existing term loan to increase the principal amount of the loan from $15,000,000 to $20,882,353 (the \"Amended Term Loan\"). Brokered Private Placement The Offering was completed in accordance with the terms of an agency agreement dated December 14, 2023 and entered into by the Company with Cormark Securities Inc. and BMO Capital Markets, as co-lead agents, and Canaccord Genuity Corp., Fort Capital Securities Ltd. and Paradigm Capital Inc. (collectively, the \"Agents\"). Under the Offering, the Company issued an aggregate 13,133,367 Common Shares at a price of $1.20 per Common Share for aggregate gross proceeds of $15,760,040. In consideration for the services provided by the Agents under the Offering, the Company paid to the Agents an aggregate cash commission of $796,983, representing 6% of the gross proceeds of the Offering (other than in respect of subscribers included on a president's list formed by the Company, for which a reduced commission of 3% of the gross proceeds was paid). In connection with the Offering, EdgePoint Investment Group Inc., or an entity (or entities) managed by EdgePoint (\"EdgePoint\"), exercised its participation right in respect of the Offering (the \"Participation Right\") and subscribed for an aggregate 1,265,800 Common Shares. EdgePoint was granted the Participation Right pursuant to the terms of a subscription agreement between the Company and EdgePoint dated June 28, 2023. As approximately $2,080,000 of the net proceeds of the Offering will be used to satisfy interest payments under the Amended Term Loan, EdgePoint's participation under the Offering was characterized by the TSX Venture Exchange (the \"Exchange\") as a shares-for-debt transaction subject to Exchange Policy 4.3 - Shares for Debt. Under the Offering, the Company distr...