- Funds to be used to advance exploration and resource development at both mines
Premium Nickel Resources (PNR) is pleased to announce a financing with Cymbria Corporation (TSX: CYB) (Cymbria or CYB), EdgePoint Investment Group Inc. and certain entities managed by it (EdgePoint) for aggregate gross proceeds to PNRL of CAD$33,999,200 (about P340 million).
According to a statement released by the company recently, approximately CAD$7,360,000 (P74.1 million) of the proceeds from the Financing Transactions to prepay all principal and interest owing by the company under its currently outstanding promissory note in favour of Pinnacle Island LP.
Adjacent mineral and property rights
PNR says the balance (CAD$26,6 million or P268 million) of the net proceeds of the Financing Transactions will be used to advance exploration and resource development at PNRL’s Selebi and Selkirk nickel, copper, cobalt, platinum-group elements (Ni-Cu-Co-PGE) sulphide mines in Botswana, including the acquisition of adjacent mineral and property rights as appropriate, and for general corporate purposes.
Through a combination of resource drilling and continued exploration drilling at both the Selebi and Selkirk mines, PNRL is working to establish a maiden mineral resource estimate prepared in accordance with NI 43-101.
According to the statement, PRN is committed to redeveloping the mines through modernisation and implementation of mining best practices to improve mine safety and efficiency, reduce power consumption, adopt alternative energy sources and minimise water usage.
PNRL expects that the rehabilitation of the mines on this basis will actively contribute to Botswana’s economic, social, climate and environmental objectives.
These mines, once they are brought back into production, are expected to be a significant source of critical minerals for aerospace, decarbonisation technologies and general industrial uses, in particular, during what is forecast to be a period of significant supply shortage at a critical time in the global renewable electrification transition.
The CEO of PNRL, Keith Morrison, commented: “I would like to welcome the EdgePoint team to PNRL and thank Pinnacle Island for their long-term support. This debt refinancing pursuant to the term loan will extend our current debt maturity for three years until June 2026.
“The total funding resulting to PNRL pursuant to the financing transactions of approximately CAD$34 million will provide us with the resources to advance both the National Instrument 43-101 -Standards of Disclosure for Mineral Projects (NI 43-101) resource compliance and additional exploration drilling at the Selebi and Selkirk mine.”
Premium Nickel Resources is a leading mining company focused on nickel, copper, cobalt, and platinum-group elements (Ni-Cu-Co-PGE). contribute to the global transition towards renewable energy and decarbonisation technologies.