Bullboard - Stock Discussion Forum Nickel 28 Capital Corp V.NKL

Alternate Symbol(s): CONXF

Metals & Mining Industrial Metals & Minerals

Nickel 28 Capital Corp. is a Canada-based nickel-cobalt producer through its 8.56% joint-venture interest in the Ramu Nickel-Cobalt Operation located in Papua New Guinea. In addition, the Company manages a portfolio of nickel and cobalt royalties on projects in Canada, Australia and Papua New Guinea, including a 1.75% net smelter return (NSR) royalty on the fully permitted Dumont nickel project... see more

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Nickel 28 Capital Corp > A question to @AnthonyMilewski for clarification

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Post by urai58 on Jan 15, 2021 5:16am

A question to @AnthonyMilewski for clarification

There is great interest in Conic Metals in the German-speaking forum wallstreet-online.de. In the course of the discussion the following question arose:

If the mine closes temporarily and Ramu cannot transfer any cash to Conic for 1 year, then 5m $ cash will flow as interest payment from the company Conic to Ramu: Yes or No? "

I ask you politely for an answer with understandable reasons. It is about that all users of wallstreet-online.de understand the business case of Conic Metals regarding Ramu and that there are no uncertainties. Thank you very much for your support.

urai58

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Comment by AnthonyMilewski on Jan 15, 2021 7:20am

Urai58 - thank you for the question. The debt sits at the JV level and is non recourse to the parent. This means that in your example if there was a shutdown unpaid interest would accrue at the JV level and NOT require a cash call to the parent - Conic. It is a really good structure for equity holders.

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