Business
Premium Nickel Resources Closes Previously-Announced CAD $7 Million Bridge Loan to Fund Ongoing Work on Its 100%-Owned Botswana Assets Providing Flexibility to Finalize Long-Term Financing Initiatives
Toronto, Ontario--(Newsfile Corp. - November 28, 2022) - Premium Nickel Resources Ltd. (TSXV: PNRL) ("PNRL" or the "Company") is pleased to announce the closing
About this update from Nexmetals Mining Corp.
[{"type":"text","content":" 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 secured loan agreement (the \"Bridge Loan\") with Pinnacle Island LP, an arm's-length limited partnership formed under the laws of the Province of Ontario (the \"Lender\") (see news release dated November 21, 2022). The net proceeds from the Bridge Loan will be used to fund the ongoing redevelopment work programs on the Company's Botswana assets, being its 100% owned Selebi and Selkirk Mines, and for general corporate purposes. The work program on Selebi, PNRL's flagship asset, is expected to include shaft re-fitting, underground re-development as well as additional surface and UG drilling to further validate the geotechnical structural controls. Keith Morrison, CEO commented: \"We are evaluating a number of potential financial structures to identify the best long-term capital partners to the Company while optimising our near-term cost of capital. This Bridge Loan allows us to continue with our planned project developments, while providing sufficient time for the 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 Botswana assets.\" The Bridge Loan bears a principal amount of CAD $7 million and an interest rate of 10% per annum, calculated monthly and payable on the maturity date of February 22, 2023, 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 Bridge Loan will be fully and unconditionally guaranteed by each of the Company's existing and future subsidiaries. The Bridge Loan is subject to certain covenants and provisions on events of default, repayments and mandatory prepayments that are customary for a loan of this nature. In connection with the Bridge Loan, the Company paid a commitment fee of CAD $260,000 to the Lender and issued it 119,229 common share 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. The warrants and an...