GREY:FNKLF - Post by User
Post by
satelliteguyon May 18, 2012 8:02am
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First Nickel Closes a US$10 Million Loan Facility
First Nickel Closes a US$10 Million Loan Facility First Nickel Closes a US$10 Million Loan Facility with The Bank of Nova Scotia
Friday, May 18, 2012
TORONTO, ONTARIO--(Marketwire - May 18, 2012) - First Nickel Inc. ("First Nickel", "FNI" or the "Company") (TSX:FNI) is pleased to announce that it has entered into a US$10 million revolving credit facility with The Bank of Nova Scotia ("BNS facility") with an initial 2 year term. Funds from the BNS facility will be used to finance working capital requirements for the Lockerby mine and for general corporate purposes.
FNI is also pleased to announce that it has freed up capital tied to its Lockerby mine closure plan, replacing a letter of credit with a surety bond. The bond guarantees the full cost of the $5.9 million closure plan with the Company posting $2.4 million as cash security in support of the bond. The letter of credit had previously been secured by a $5.9 million restricted term deposit which is now fully available for the Company's use.
"These two transactions further strengthen our balance sheet providing $13.5 million of additional liquidity," said Steven Cresswell, Vice President and Chief Financial Officer.