Canada Nickel Announces US$10 Million Loan Facility and Provides Corporate Update
1
Canada Nickel Announces US$10 Million Loan Facility and Provides Corporate Update
TORONTO, December 21, 2021 - Canada Nickel Company Inc. ("Canada Nickel" or “The Company") (TSXV:CNC)
(OTCQX: CNIKF) is pleased to provide an update on its discussions with strategic investors and financing activities.
“Canada Nickel is engaged in ongoing and constructive discussions with strategic investors which have been
extended into the new year. The Company continues to aggressively advance the Crawford Nickel Sulphide Project
and has arranged a US$10 million loan facility from Auramet which will ensure the Company remains well-funded
through the first quarter when the Company expects to conclude its strategic investor process,” said Mark Selby,
Chair and CEO of Canada Nickel.
“Canada Nickel has made significant strides over the past year by continuing to deliver promising drilling results ,
delivering a robust Preliminary Economic Assessment , demonstrating significant improvements to our
metallurgical performance, and consolidating a Timmins nickel district . We look forward to maintaining our
momentum into 2022 in a market that is demonstrating a strong interest in both nickel sulphide assets and low-
carbon projects,” Mr. Selby continued.
Loan Facility
The Company has arranged a US $10 million secured loan facility with Auramet which is expected to close on or
before January 5, 2022. The loan is due April 5, 2022, and will carry an interest rate of 1% per month and has an
arrangement fee of 2% o f the loan amount and the issuing of 250,000 2-year warrants at a strike price of $3.94
per share on the closing date.
This transaction is subject to customary closing conditions, including TSX Venture Exchange approval. 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.
About Auramet
Auramet is one of the largest physical precious metals merchants in the world with over $2 2 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. Auramet has built a consistently successful and prominent
franchise in the metals space on the back of an experienced management team that has proven to be innovative
and capable of delivering the highest quality service to participants in the sector. In fiscal year 2020, it purchased
over 6 million ounces of gold, 70 million ounces of silver and 3.2 million ounces of PGMs sourced from a diversified
base of over 75 mining companies, 15 recycling companies and 20 refineries/smelters (with none comprising more
2
than 5%). Auramet has also provided term financing facilities in excess of $850 million to date in the mining sector
and is looking to grow its capital investment business in the precious metals and battery -related metals mining
space.
About Canada Nickel
Canada Nickel Company Inc. 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. Canada Nickel Company
has successfully registered and applied for trademarks in various jurisdictions for NetZeroNickel™, NetZero
Cobalt™ and NetZero Iron™ and is pursuing the development of processes to allow the production of net zero
carbon nickel, cobalt, and iron products. Canada Nickel provides investors with leverage to nickel and cobalt in
low political risk jurisdictions. Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-
Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp. For more information,
please visit www.canadanickel.com.
Contact:
Mark Selby, Chair and CEO
Phone: 647-256-1954
Email: [email protected]
Cautionary Statement Concerning Forward Looking Statements
This press release contains certain information that may constitute "forward -looking information" under
applicable Canadian securities legislation. Forward looking information includes, but is not limited to, the
metallurgical results, the timing and results of the feasibility study, the results of Crawford’s PEA, includin g
statements relating to net present value, future production, estimates of cash cost, proposed mining plans and
methods, mine life estimates, cash flow forecasts, metal recoveries, carbon footprint and sequestration levels,
estimates of capital and operating costs, timing for permitting and environmental assessments, realization of
mineral resource estimates, capital and operating cost estimates, project and life of mine estimates, ability to
obtain permitting by the time targeted, size and ranking o f project upon achieving production, economic return
estimates, the timing and amount of estimated future production and capital, operating and exploration
expenditures and potential upside and alternatives. Readers should not place undue reliance on forward-looking
statements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of Canada Nickel to be materially different from any future
results, performance or achievements expressed or implied by the forward -looking statements. The PEA results
are estimates only and are based on a number of assumptions, any of which, if incorrect, could materially change
the projected outcome. There are no assurances that Crawford will be placed into production. Factors that could
affect the outcome include, among others: the actual results of development activities; project delays; inability to
raise the funds necessary to complete development; general business, economic, competitive, political and social
uncertainties; future prices of metals or project costs could differ substantially and make any commercialization
uneconomic; availability of alternative nickel sources or substitutes; actual nickel recovery; conclusions of
economic evaluations; changes in project parameters as plans continue to be refined; accidents, labour disputes,
the availability and productivity of skilled labour and other risks of the mining industry; political instability,
3
terrorism, insurrection or war; delays in obtaining governmental approvals, necessary permitting or in the
completion of development or construction activities; mineral resource estimates relating to Crawford could
prove to be inaccurate for any reason whatsoever; additional but currently unforeseen work may be required to
advance to the feasibility stage; and even if Crawford goes into production, there is no assurance that operations
will be profitable.
Although Canada Nickel has attempted to identify important factors that could cause actual actions, events or
results to differ materially from those described in forward -looking statements, there may be other factors that
cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking
statements contained herein are made as of the date of this news release and Canada Nickel disclaims any
obligation to update any forward -looking statements, whether as a result of new information, future events or
results or otherwise, except as required by applicable securities laws.