Canada Nickel Company Inc. announces the closing of a secured loan facility with Auramet International LLC of US$10 million previously announced on December 21, 2021. Canada Nickel Company is advancing the next generation of nickel-cobalt sulphide projects to deliver nickel and cobalt required to feed the high growth electric vehicle and stainless steel markets.
The proceeds will be used to ensure the Company remains well-funded as it continues to aggressively advance the Crawford Nickel Sulphide Project through the first quarter of 2022 when the Company expects to conclude its strategic investor process.
The loan is due on April 5, 2022 and will carry an interest rate of 1% per month and has an arrangement fee of 2% of the loan amount. In addition, the Company has issued to Auramet 325,000 one-year warrants at a strike price of $3.94 per share, a 10% premium to the Company’s 10 day VWAP when loan terms were agreed.
The term of the warrant was reduced from two years to one year, and the number of warrants increased by 75,000 to 325,000. The loan will be subject to such terms and conditions including certain specified positive and negative covenants that are customary for a transaction of this nature. The warrants will be subject to a four month hold period under applicable Canadian securities law.
Auramet is one of the largest physical precious metals merchants in the world with over $22 billion in annual revenues and provides a full range of services to all participants in the precious metals chain, from extraction and production to manufacturing and consumption. Auramet is a private company established in 2004 by a team who had worked previously together since 1989. Their business is comprised of three main activities: physical metals trading, metals merchant banking and advisory.