Premium Nickel Resources Ltd. Announces Closing of Financing Transactions Totalling Approximately CAD$34 Million
Premium Nickel Resources Ltd. Announces
Closing of Financing Transactions Totalling
Approximately CAD$34 Million
Toronto, Ontario--(Newsfile Corp. - June 28, 2023) -
Premium Nickel Resources Ltd. (TSXV: PNRL)
(OTCQX: PNRLF)
("
PNRL
"
or the
"
Company
"
)
is pleased to announce that it has closed its previously
announced financing with Cymbria Corporation (
TSX: CYB
) ("
Cymbria
"), EdgePoint Investment Group
Inc. and certain other entities managed by it ("
EdgePoint
"), for aggregate gross proceeds of
CAD$33,999,200. The financing included three concurrent and inter-conditional transactions (collectively
the "
Financing Transactions
") comprised of an equity offering of units, a three year term loan and
options to acquire a 0.5% net smelter returns royalty on the Company's Selebi and Selkirk mines in
certain circumstances upon payment of further consideration (see news release dated June 13, 2023).
As a result of the Financing Transactions, Cymbria and certain other funds managed by EdgePoint (the
"
Financing Parties
") have acquired 14,772,000 common shares of the Company ("
Shares
"),
representing approximately 10.9% of the Company's issued and outstanding Shares. The Financing
Parties also acquired on closing an aggregate of 5,324,000 warrants with a three year term and an
exercise price of CAD$1.4375 which, if exercised, together with the Shares acquired at closing would
result in the Financing Parties holding approximately 14.2% of the Shares in the aggregate (calculated
on a partially-diluted basis).
Immediately following closing of the Financing Transactions, the Company prepaid all principal and
interest owing by the Company under its promissory note in favour of Pinnacle Island LP.
The Company is preparing for an extensive surface and underground drilling campaign with a focus on
defining National Instrument 43-101 ("
NI 43-101
") compliant resources, including drill testing of high-
conductance electromagnetic ("
EM
") targets situated along the down-plunge extension of the Selebi
North mineralization. The deepest of these drillholes, designed to evaluate the down-plunge area, will
specifically target the sources of the EM anomalies identified during the Company's 2022 drilling
program. These anomalies are located south of the Selebi North mineralization and this drilling is
expected to provide evidence that the known Selebi and Selebi North ore bodies are part of the same
mineralized horizon.
All securities issued in connection with the Financing Transactions are subject to a hold period of four
months plus a day from the date hereof and the resale rules of applicable securities legislation and
policies of the TSX Venture Exchange. Fort Capital Partners acted as financial advisor to PNRL on the
Financing Transactions and was paid cash fees by PNRL of 5.0% of the gross proceeds of the equity
portion of the Financing Transactions and 2.5% of the gross proceeds of the term loan portion of the
Financing Transactions, plus applicable taxes.
About Premium Nickel Resources Ltd.
PNRL is a mineral exploration and development company that focuses on discovering and advancing
high-quality nickel, copper and cobalt resources. We are driven by our belief that the demand for these
metals will continue to grow in the medium to long term, as a result of global urbanization and the
increasing adoption of electric motors over internal combustion engines. These metals are vital for
achieving a low-carbon future.
Our global strategy is to identify the most promising Ni-Cu-Co-PGE projects and acquire or invest in
opportunities that offer high prospectivity in mining friendly jurisdictions located in low-risk countries with
supportive foreign investment and resource acts and strong rule of law. Our portfolio includes various
projects (Botswana, Greenland, Canada and Morocco) that complement our flagship Selebi Ni-Cu-Co
sulphide mine located in Selebi-Phikwe, Botswana.
PNRL is committed to governance through transparent accountability and open communication within
our team and our stakeholders. Our skilled team has worked 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 members have on average more than 20 years of
experience in every single aspect of mine discovery and development, from geology to operations.
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 Information
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. The words "will", "plan", "potential", "expect", "could" and similar expressions identify forward-
looking information. The forward-looking information in this news release includes statements relating to:
the use of proceeds by the Company from the Financing Transactions; PNRL's plans and timeline to re-
develop the Selebi and Selkirk mines and the drilling planned by PNRL; PNRL's plans to establish
mineral resource or mineral reserve estimates in accordance with NI 43-101 for each of the Selebi and
Selkirk mines; PNRL's possible acquisition of adjacent consolidating mineral and property rights; the
expected benefits from resuming production at the Selebi mine or Selkirk mine; and other statements
that are not historical facts. 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. Although the Company believes that the
expectations reflected in the forward-looking information or statements are reasonable, prospective
investors in the Company's securities should not place undue reliance on forward-looking statements
because the Company can provide no assurance that such expectations will prove to be correct.
For additional information with respect to these and other factors and assumptions underlying the
forward-looking information made in this news release concerning the Company, see: (i) the section
entitled
"Risks and Uncertainties"
in the most recent management discussion and analysis of the
Company; and (ii) the risk factors outlined in the filing statement of the Company dated July 22, 2022,
both of which are available electronically on SEDAR (
www.sedar.com
) under PNRL's issuer profile. The
forward-looking statements set forth herein concerning the Company reflect management's expectations
as at the date of this news release and are subject to change after such date. The Company disclaims
any intention or obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, other than as required by law.
Neither the 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. No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information contained herein.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/171623