Canada Nickel Bolsters Financial Position with US$15M Loan Facility

• Canada Nickel secures US$15 million loan facility from Auramet International, Inc.
• The loan proceeds will fund the Canada Nickel's ongoing permitting, engineering, and financing activities.
• The company targets mid-year 2025 for Crawford Project construction decision.
• Discussions with offtake and project partners are expected to conclude by year-end 2024.
• The company's loan terms include 1% monthly interest rate and 750,000 warrants for Auramet.

In a significant move to strengthen its financial footing, Canada Nickel Company Inc. (TSXV:CNC) has announced the arrangement of a US$15 million loan facility with Auramet International, Inc. This strategic financial maneuver, expected to close by July 9, 2024, positions the company to maintain momentum on its flagship Crawford Nickel-Cobalt Sulphide Project, located in the heart of the Timmins-Cochrane mining camp.

Loan Facility Details: A Strategic Financial Move

The US$15 million loan facility arranged with Auramet International, Inc. is a pivotal development for Canada Nickel. Let's delve into the key aspects of this financial arrangement:

1. Loan Terms due date will be January 9, 2025, interest rate of 1.00% per month and an arrangement fee of 2.5%
2. Warrant Issuance: 750,000 at a strike price of $1.42 and warrant duration of 1 yea
3. Regulatory compliance: Four-month hold period on warrants and underlying shares under Canadian securities laws
4. Intended Use of Proceeds: working capital purposes and funding ongoing permitting, engineering, and financing activities

This loan facility demonstrates Auramet's continued support for Canada Nickel, providing the company with essential liquidity to advance its projects. The terms of the loan, while carrying a relatively high interest rate, reflect the current market conditions for junior mining companies and the perceived potential of Canada Nickel's assets.

Crawford Project: Progressing Towards Construction

The Crawford Nickel-Cobalt Sulphide Project continues to be the focal point of Canada Nickel's portfolio, with recent updates highlighting its progress. The company has set a target for a construction decision by mid-year 2025, contingent on obtaining the necessary permits.

In the meantime, Canada Nickel is actively engaged in permitting processes, engineering work, and financing discussions. Negotiations with potential offtake and project partners are ongoing, with an expected conclusion before the end of 2024. This concentrated effort to advance the Crawford Project towards a construction decision demonstrates Canada Nickel's dedication to bringing this significant nickel asset into production. By providing a clear timeline, the company offers investors a defined horizon for potential value realization.

Auramet: A Seasoned Financial Partner

Understanding the caliber of Canada Nickel's financial partner adds context to this loan facility. Auramet International, Inc. brings considerable expertise to the table as one of the largest physical precious metals merchants globally with annual revenues exceeding US$20 billion, has provided term financing facilities exceeding US$1 billion to date, and awarded gold medal for ESG commitment. Auramet's extensive experience in the metals sector and its robust financial capabilities make it a valuable partner for Canada Nickel. The willingness of such a prominent player in the industry to extend this loan facility can be seen as a vote of confidence in Canada Nickel's projects and management.

Conclusion: A Critical Juncture for Canada Nickel

Canada Nickel Company Inc. stands at a pivotal moment in its development. The US$15 million loan facility from Auramet provides crucial funding to advance the Crawford Nickel-Cobalt Sulphide Project towards a potential construction decision in mid-2025. For investors considering Canada Nickel, several key points emerge:

1. Strategic Positioning: The company is well-positioned to capitalize on the growing demand for nickel in EV batteries and stainless steel, with its flagship Crawford Project located in a stable mining jurisdiction.
2. Innovative Approach: Canada Nickel's focus on NetZero initiatives sets it apart in the industry, potentially offering a competitive advantage in an increasingly environmentally conscious market.
3. Progress Milestones: The targeted mid-2025 construction decision provides a clear timeline for investors to gauge the company's progress.
4. Financial Support: The ability to secure funding from a reputable partner like Auramet demonstrates confidence in the project and management team.
5. Risk-Reward Profile: While the potential rewards of a successful large-scale nickel project are significant, investors must weigh this against the inherent risks of junior mining companies and the capital-intensive nature of project development.

As Canada Nickel continues to advance the Crawford Project and engage with potential partners, investors should closely monitor key developments, including:

• Results of ongoing engineering and permitting activities
• Outcomes of discussions with offtake and project partners
• Future financing arrangements and their terms
• Updates on project economics and feasibility studies
• Advancements in the company's NetZero technologies

The coming months will be critical in determining Canada Nickel's trajectory. For investors with a high risk tolerance and a bullish outlook on the nickel market, Canada Nickel offers exposure to a potentially significant nickel asset with a focus on sustainable production methods. However, as with any junior mining investment, thorough due diligence and careful consideration of the risks involved are essential.

As the global push for electrification and sustainable metal production continues, Canada Nickel's progress at Crawford will be worth watching for investors interested in the future of nickel supply and the evolution of environmentally responsible mining practices.