Premium Nickel Resources Ltd. Announces CAD $7 Million Bridge Loan
Premium Nickel Resources Ltd. Announces
CAD $7 Million Bridge Loan
Toronto, Ontario--(Newsfile Corp. - November 21, 2022) -
Premium Nickel Resources Ltd. (TSXV:
PNRL) ("PNRL" or the "Company")
is pleased to announce a CAD 7 million bridge loan financing
(the "
Bridge Loan
") from Pinnacle Island LP, an arm's-length limited partnership formed under the laws
of the Province of Ontario (the "
Lender
"), which is evidenced by the issuance of a promissory note by
the Company to the Lender (the "
Promissory Note
").
The Promissory Note bears a principal amount of CAD 7 million and interest at a rate of 10% per
annum, calculated monthly and payable on February 22, 2023, being the maturity date of the Promissory
Note, 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 Promissory Note will be fully and unconditionally guaranteed by each of the Company's existing
and future subsidiaries (collectively, the "
Guarantors
"). The Promissory Note is subject to certain
covenants and provisions on events of default, repayments and mandatory prepayments that are
customary for a loan of this nature.
The Company intends to use the proceeds from the issuance of the Promissory Note to finance the
working capital of the Company.
In connection with the issuance of the Promissory Note, the Company paid a commitment fee of CAD
260,000; and issued 119,229 common share purchase warrants (the "
Warrants
") to the Lender. Each
Warrant is exercisable to acquire one common share of the Company (the "
Common Shares
") at a
price of CAD 2.04 per Common Share for a period of one year from date of issue (which will occur on
closing when the funds are advanced under the Promissory Note). The Warrants and any common
shares issuable on exercise of the Warrants are subject to a statutory four-month hold period under
applicable Canadian securities laws from the date of issue (which will also occur on closing when the
funds are advanced under the Promissory Note).
The Bridge Loan and the Warrants are subject to the final acceptance of the TSX Venture Exchange.
About Premium Nickel Resources Ltd.
PNRL is a Canadian company dedicated to the exploration and development of high-quality nickel
copper + cobalt resources. PNRL believes that the medium to long-term demand for these metals will
continue to grow through global urbanization and the increasing replacement of internal combustion
engines with electric motors. Importantly, these metals are key to a low-carbon future.
PNRL focuses its efforts on discovering world class nickel sulphide assets in jurisdictions with rule of-law
that comply with PNRL's values and principles which surpasses the highest industry standards. PNRL is
committed to governance through transparent accountability and open communication within our team
and our stakeholders.
PNRL maintains a skilled team who has worked on over 100 projects collectively, accumulating over 400
years of resource discoveries, mine development and mine re-engineering experience on projects like
Selebi and Selkirk. PNRL's team have on average more than 20 years of experience in every single
aspect of mine discovery and development, from geology to operations.
On January 31, 2022, PNRL closed the acquisition of PNRL's flagship asset, the Selebi Mine. The
Selebi Mine includes two shafts, (Selebi and Selebi North shafts) and related infrastructure (rail, power
and water). Shaft sinking and plant construction started in 1970. Mining concluded in October 2016 when
the operations were placed on care and maintenance due to a failure in the separate and offsite
processing facility. The Selebi Mine was subsequently placed under liquidation in 2017. The proposed
work plan for the Selebi Mine includes diamond drilling which is expected to be ongoing for up to 18
months as well as the delivery of a compliant PEA by the end of 2023. During that time, additional
metallurgical samples will be collected and sent for more detailed studies. The underground
infrastructure at Selebi North will be upgraded to support an underground drilling program as well as
improve health & safety.
In addition, PNRL is evaluating direct and indirect nickel asset acquisition opportunities globally, and
also: (i) holds 100% interest in the Selkirk Mine which was acquired in August 2022 as well as four
adjacent Prospecting Licenses in Botswana, (ii) holds a 100% interest in the Maniitsoq property in
Greenland, which is a camp-scale permitted exploration project comprising 3,048 square kilometres
covering numerous high-grade nickel-copper + cobalt-sulphide occurrences associated with norite and
other mafic-ultramafic intrusions of the Greenland Norite Belt; (iii) holds a 100% interest in the Post
Creek/Halcyon property in Sudbury, Ontario which is strategically located adjacent to the past producing
Podolsky copper-nickel-precious metal sulphide deposit of KGHM International Ltd.; (iv) holds a 100%
ownership of property in the Quetico region near Thunder Bay, Ontario; and (v) is expanding its area of
exploration interest into Morocco.
ON BEHALF OF THE BOARD OF DIRECTORS
Keith Morrison
Chief Executive Officer
Premium Nickel Resources Ltd.
For further information about Premium Nickel Resources Ltd., please contact:
Jaclyn Ruptash
Vice President Business Development
+1 (604) 770-4334
Cautionary Note Regarding Forward-Looking Statements:
This news release contains "forward-looking information" within the meaning of applicable Canadian
securities legislation based on expectations, estimates and projections as at the date of this news
release. Forward-looking information involves risks, uncertainties and other factors that could cause
actual events, results, performance, prospects and opportunities to differ materially from those
expressed or implied by such forward-looking information. Forward-looking information in this news
release includes, but is not limited to, the use of proceeds from the Bridge Loan; the ability of the
Company to fund the repayment of the Promissory Note; objectives, goals or future plans of the
Company including the proposed work plan at the Selebi Mine. Factors that could cause actual results to
differ materially from such forward-looking information include, but are not limited to, successful
negotiation of documents; capital and operating costs varying significantly from estimates; the
preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required
governmental, environmental or other project approvals; uncertainties relating to the availability and costs
of financing needed in the future; changes in equity markets; inflation; fluctuations in commodity prices;
delays in the development of projects; the other risks involved in the mineral exploration and
development industry; and those risks set out in the Company's public disclosure record on SEDAR
(
www.sedar.com
) under the Company's issuer profile. Although the Company believes that the
assumptions and factors used in preparing the forward-looking information in this news release are
reasonable, undue reliance should not be placed on such information, which only applies as of the date
of this news release, and no assurance can be given that such events will occur in the disclosed time
frames or at all. The Company disclaims any intention or obligation to update or revise any forward-
looking information, whether as a result of new information, future events or otherwise, other than as
required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this news release.
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DISSEMINATION IN THE UNITED STATES
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