Canada Nickel Closes Previously Announced US$10 Million Loan Facility with Auramet International, Inc.
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Canada Nickel Closes Previously Announced US$10 Million Loan Facility
with Auramet International, Inc.
TORONTO, October 18, 2022 – Canada Nickel Company Inc. ("Canada Nickel" or the "Company")
(TSXV: CNC) (OTCQX: CNIKF) today announced that it has closed a secured loan facility with Auramet
International, Inc. (“Auramet”) of US$10 million previously announced on September 29, 2022. The
proceeds will allow the Company to execute post feasibility study work on permitting and detailed
engineering which is advantageous to complete during the co ming winter months and allows the
Company to remain well-funded as it continues to aggressively advance the project.
The loan will be due January 18, 2023, will carry an interest rate of 1.00% per month, and be subject
to a 2% arrangement fee. At closing, Auramet will also receive 325,000 1-year warrants with a strike
price of $1.52 per share. 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 and the underlying shares will be subject to a four month hold period under applicable
Canadian securities laws.
About Auramet
Auramet is one of the largest physical precious metals merch ants in the world with over $20 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 me tals 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. Auramet purchases tens of millions of ounces of gold, silver and PGMs
sourced fr om a diversified base of mining companies, recycling companies and refineries/smelters.
Auramet has also provided term financing facilities in excess of $950 million to date in the mining sector
and is looking to grow its capital investment business in th e precious metals and battery -related metals
mining space. In 2022, Auramet received a Gold Metal Sustainability Rating from Ecovadis, a global leader
in business sustainability ratings.
About Canada Nickel Company
Canada Nickel Company Inc. is advancing the next generation of nickel-sulphide projects to deliver nickel
required to feed the high growth electric vehicle and stainless steel markets. Canada Nickel Company
has applied in multiple jurisdictions to trademar k the terms NetZero Nickel TM, NetZero Cobalt TM,
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NetZero IronTM 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 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.
For further information, please 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, drill
and exploration results relating to the target properties described herein (the "Properties"), the potential
of the Crawford Nickel Sulphide Project and the Properties, timing of economic studies and mineral
resource estimates, the ability to sell marketable materials, strategic plans, including future exploration
and development results, and corporate and technical objectives. Forward -looking information is
necessarily based upon several assumptions that, while considered reasonable, are subject to known and
unknown risks, uncertainties, and other factors which may cause the actual results and future events to
differ materially from those expressed or implied by such forward-looking information. Factors that could
affect the outcome incl ude, among others: future prices and the supply of metals, the future demand
for metals, the results of drilling, inability to raise the money necessary to incur the expenditures required
to retain and advance the property, environmental liabilities (k nown and unknown), general business,
economic, competitive, political and social uncertainties, results of exploration programs, risks of the
mining industry, delays in obtaining governmental approvals, failure to obtain regulatory or shareholder
approvals, and the impact of COVID -19 related disruptions in relation to the Company's business
operations including upon its employees, suppliers, facilities and other stakeholders. There can be no
assurance that such information will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly, readers should not place undue
reliance on forward-looking information. All forward-looking information contained in this press release
is given as of the date hereof and is based upon the opinions and estimates of management and
information available to management as at the date hereof. Canada Nickel disclaims any intention or
obligation to update or revise any forward -looking information, whether because of new information,
future events or otherwise, except as required by law.