Business
Premium Nickel Resources Announces Financing Transactions Totalling Approximately CAD$34 Million
Toronto, Ontario--(Newsfile Corp. - June 13, 2023) - Premium Nickel Resources Ltd. (TSXV: PNRL) (OTCQX: PNRLF) ("PNRL" or the "Company") is pleased to announce
About this update from Nexmetals Mining Corp.
[{"type":"text","content":" Toronto, Ontario--(Newsfile Corp. - June 13, 2023) - Premium Nickel Resources Ltd. (TSXV: PNRL) (OTCQX: PNRLF) (\"PNRL\" or the \"Company\") is pleased to announce a financing with Cymbria Corporation (TSX: CYB) (\"Cymbria\" or \"CYB\"), EdgePoint Investment Group Inc. and certain entities managed by it (\"EdgePoint\") for aggregate gross proceeds to PNRL of CAD$33,999,200. The financing will include three concurrent and inter-conditional transactions (collectively the \"Financing Transactions\"). Equity Financing PNRL and Cymbria have entered into a binding term sheet dated June 12, 2023 providing for the issue and sale of 14,772,000 units at a subscription price of CAD$1.10 per unit (the \"Issue Price\") for aggregate gross proceeds to PNRL of CAD$16,249,200 (the \"Equity Financing\"). Each unit will be comprised of one common share of PNRL (the \"Common Shares\") and 22.5% of one whole Common Share purchase warrant (each a \"Transferable Warrant\" and together the \"Transferable Warrants\"). The total whole number of Transferable Warrants issuable in the Equity Financing is 3,324,000. Each Transferable Warrant may be exercisable by the holder thereof to purchase one Common Share at an exercise price of CAD$1.4375 per Common Share for a period of three years. The Transferrable Warrants will be freely transferable upon issuance thereof, subject to the restrictions on transfer pursuant to applicable securities laws and the policies of the TSX Venture Exchange (the \"TSXV\"). The Issue Price represents a premium of approximately 9.5% to the volume-weighted average trading price of the Common Shares of the Company on the TSXV over the past twenty trading days. The closing price of the Common Shares on the TSXV on June 12, 2023 was CAD$1.15. Term Loan PNRL and Cymbria (the \"Lender\"), an affiliate of EdgePoint, have also entered into a binding commitment letter dated June 12, 2023 pursuant to which the Lender has agreed to advance to PNRL on closing CAD$15,000,000 for a three-year term (the \"Term Loan\"). The Term Loan will bear interest at a rate of 10% per annum payable quarterly in arrears. The principal amount of the Term Loan will mature and be payable on the third anniversary of the date of issue. The obligations of the Company pursuant to the Term Loan will be fully and unconditionally guaranteed by each of the Company's ...