Canada Nickel Secures a Whopping US$15 Million Loan Deal with Auramet International!

Canada Nickel Company has recently sealed its previously announced US$15 million loan facility deal with Auramet International Inc., a critical milestone in the company’s progress towards developing its Crawford Nickel Sulphide Project. This investment is a testament to the confidence shown in Canada Nickel’s highly prospective assets and its ability to advance these projects responsibly and efficiently. Let’s delve into the details of this strategic step, which represents a significant credit in the company’s continued efforts to emerge as a leading nickel company in Canada. Auramet International Inc., is a highly reputable merchant bank and advisory firm, making it a strategic partner for Canada Nickel. Based in New Jersey, Auramet specializes in the metals and mining sector, with operations spanning across the globe. It has a solid track record of successful projects under its belt. The loan facility agreement between these giants paves the way for a mutually beneficial partnership that could promote the growth and prosperity of the projects they undertake collectively. The US$ 15 million loan facility is aimed at facilitating the continued development and advancement of Canada Nickel’s Crawford Nickel Sulphide Project. The project is one of the largest nickel sulphide discoveries in recent years and has demonstrated large-scale potential through its substantial nickel resources. This support from Auramet can act as a catalyst to accelerate production efforts and enable Canada Nickel to reach significant amateur status in North America and beyond. The terms of the loan agreement stipulate that the funding will be available to Canada Nickel in two tranches. The first tranche of US$8 million has been drawn immediately. The second tranche, amounting to US$7 million, can be drawn anytime within twelve months from the closing date. The financial flexibility extended by Auramet International Inc. with this generous timeline indicates the large-scale backing and faith placed in Canada Nickel’s potential. Repayment terms for the loan have been set at 24 months from the closing of the transaction and the credit facility can be repaid, partially or fully, at any time without penalty. The interest rate is pegged at 12%, with an opportunity to decrease to 10% if the company meets particular milestones. The structure of the loan agreement underscores the balance achieved between the borrower’s interests and the lender’s expectations, which is pivotal to the success of any credit facility. Proceeds from the loan facility will primarily be used for permitting, detailed engineering, drilling and exploration, advancing offtake and financing discussions, and other corporate purposes for the Crawford project.