Premium Nickel Resources (TSXV: PNRL) closed a CAD$7 million secured bridge loan with Pinnacle Island LP on Monday to continue its operations in Botswana.
The proceeds from the loan will fund the ongoing redevelopment work programs on the company’s assets in Botswana. This includes its 100 per cent owned Selebi and Selkirk Mines, and general operating purposes. The developments on the company’s Selebi asset will include shaft re-fitting, underground re-development and additional surface and underground drilling to validate geotechnical structural controls.
The bridge loan bears an interest rate of 10 per cent per year, calculated monthly. Also, the maturity date is February 22, 2023, which can be extended to March 22, 2023 with written notice.
“This Bridge Loan allows us to continue with our planned project developments, while providing sufficient time for the individual financing initiatives to be evaluated and completed in a logical sequence,” said Keith Morrison, CEO of Premium Nickel Resources.
Premium Nickel searches for nickel resources in Botswana
Premium Nickel is a Canadian mining company focused on the exploration and development of nickel, copper and cobalt resources. Its focused on discovering world class nickel sulphide assets in jurisdictions where the laws comply with Premium’s values and principles The company believes that medium to long term demand for these metals will develop courtesy of global urbanization and the market for electric motors. .
The company also paid $260K to the lender and issued 119,229 common share warrants. Additionally, the lender can exercise these at $2.04 per share until Nov. 25, 2023. The warrants and shares are subject to the standard four month hold under Canadian securities laws.