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Premium Nickel Resources Announces Proposed $20 Million Equity and Debt Financing Package
$14.1 Million Brokered Private Placement of Common Shares Increase in Existing Term Loan with Cymbria Corporation by $5.9 Million to $20.9 Million TORONTO, Dec.
About this update from Nexmetals Mining Corp.
[{"type":"text","content":" $14.1 Million Brokered Private Placement of Common Shares Increase in Existing Term Loan with Cymbria Corporation by $5.9 Million to $20.9 Million TORONTO, Dec. 3, 2023 /CNW/ - Premium Nickel Resources Ltd. (TSXV: PNRL) (OTCQX: PNRLF) (the \"Company\") is pleased to announce a proposed equity and debt financing package of $20 million, comprising: Brokered Private Placement: a \"best efforts\" private placement offering of 11,765,000 common shares of the Company (the \"Common Shares\") at a price of $1.20 per Common Share for aggregate gross proceeds of approximately $14.1 million (the \"Offering\"). Amended Term Loan: a second amended and restated commitment letter between the Company and Cymbria Corporation to, inter alia, amend the terms of their existing term loan to increase the principal amount of the loan from $15,000,000 to $20,882,353(the \"Amended Term Loan\"), which, upon closing of the Amended Term Loan, would result in additional gross proceeds to the Company of $5,000,000. Brokered Private Placement The Company entered into an engagement letter with Cormark Securities Inc., on behalf of BMO Capital Markets, as co-lead agent, and a syndicate of agents to be formed (collectively, the \"Agents\") in respect of the Offering. Under the Offering, the Company will issue 11,765,000 Common Shares at a price of $1.20 per Common Share for aggregate gross proceeds of approximately $14.1 million. It is anticipated that EdgePoint Investment Group Inc., or an entity (or entities) managed by EdgePoint (\"EdgePoint\"), will exercise its participation right in respect of the Offering (the \"Participation Right\") and subscribe for Common Shares in accordance with its existing ownership interest in the Company. EdgePoint was granted the Participation Right pursuant to the terms of a subscription agreement between the Company and EdgePoint dated June 28, 2023. Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 – Prospectus Exemptions (\"NI 45-106\"), the Common Shares will be offered for sale on a private placement basis: (i) in each of the provinces and territories of Canada, other than Québec, in reliance on the \"listed issuer financing exemption\" from the prospectus requirements (the \"LIFE Exemption\") available under Part 5A of NI 45-106 ...