Canada Nickel Provides Corporate Update and Announces US$15 Million Loan Facility with Auramet International, Inc.
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Canada Nickel Provides Corporate Update and
Announces US$15 Million Loan Facility with Auramet International, Inc.
TORONTO, June 24, 2024 – Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV:
CNC) (OTCQX: CNIKF) today announces that the Company has arranged a US$15 million loan facility
with Auramet, which is expected to close on or before July 9, 2024.
Mark Selby, CEO, said, “I am pleased that our long supportive financing partner, Auramet, has agreed
to provide a US$15 million bridge facility, which will allow us to remain well-funded to continue to
advance our permitting, engineering, and financing activities. Discussions with offtake and project
partners for Crawford are ongoing and expected to be completed before year end as we continue to
target a mid-year 2025 construction decision for Crawford upon receipt of permits.”
Loan Facility
The loan will be due January 9, 2025, will carry an interest rate of 1.00% per month, and be subject to a
2.5% arrangement fee. At closing, Auramet will also receive 750,000 1 year warrants with a strike price
of $1.42. 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. The
proceeds will be used for working capital purposes. The closing of the loan facility is subject to
customary conditions including the approval of the TSX Venture Exchange.
About Auramet
Auramet is one of the largest physical precious metals merchants in the world with over US$20 billion in
annual revenues and which provides a full range of services to all participants in the precious metals
supply chain. Auramet is a private company established in 2004 by seasoned professionals who have
assembled a global team of industry specialists with over 350 years combined industry experience. Their
business consists of three main activities: physical metals trading, metals merchant banking (includin g
direct lending) and project finance advisory services. The company 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 2023 it purchased over 7 million ounces of gold, 126 million ounces of silver and 3 million ounces of
PGMs, and has provided term financing facilities in excess of US$1 billion to date. Auramet is looking to
grow its capital investment business in equity, royalties and streams in the precious metals and battery
related metals mining space. Auramet is proud to have been awarded a Gold Medal for its ESG
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commitment by EcoVadis, the most trusted provider of ESG ratings with a network of more than 90,000
rated companies. For more information on Auramet, please visit www.auramet.com.
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 NickelTM, NetZero
CobaltTM, 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 politi cal 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
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
carbon capture approach could allow product ion of Net Zero nickel and generation of an additional
tonnes of CO2 credits per tonne of nickel produced after offsetting all emissions, the potential to turn
nickel mine into a generator of carbon credits rather than generator of carbon emissions, the production
of estimated average of 710,000 tonnes of carbon credits annually and 18 million total tonnes of CO2 of
credits over expected life of mine at Crawford, the ability to monetize carbon credits, the ability to
quantify carbon capture, emission estima tes, the brucite content of the deposit, the scalability of the
process, the metallurgical results, the timing and results of the feasibility study including the viability of
the inclusion of the IPT Carbonation Process and related facilities as part of th e project, the results of
Crawford’s PEA, including 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,
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 of project upon achieving
production, 5 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, perfo rmance or
achievements expressed or implied by the forward -looking statements. The PEA results are estimates
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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 applicable laws;
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, 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 descr ibed 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 Canad a 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. Neither TSX Venture Exchange nor its Regulation Ser vices
Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.