Nickel 28 Capital Corp V.NKL

New Press Release - Pelham Investment Partners LP Files Advance Notice of Nominations for the Election of a New Board of Directors of Nickel 28 Capital Corp. at the Upcoming Annual General and Special Meeting of Shareholders

NEW YORK, May 4, 2023 /PRNewswire/ - Pelham Investment Partners LP ("Pelham LP") has today filed a notice (the "Notice") with Nickel 28 Capital Corp. (formerly Conic Metals Corp.) (TSXV: NKL) ("Nickel 28" or the "Company") for the nomination of five highly-experienced and independent directors to...read article.

[ICNick]

CVs of proposed new board members look quite impressive. Pelham is there to make money, just like us smaller investors. The company has a fiduciary duty to its shareholders and there are question marks about this. Pelham's proposal could help to properly recalibrate the machine. 

[lumpy13]

It seems clear that the entry of Pelham has woken up mgmt and they (or Pelham) are driving the share price up.  I will definitely vote for the Pelham directors as NKL remains undervalued. My big question remains:  NKL can prepay the construction loan and increase their shareholding almost 40% to 11.3% of NKL. I can't find the construction loan interest rate, but why can't mgmt

[microcaptt]

If I remember correctly the interest rate is 5.5% and non-recourse to NKL's other assets.  I think the analysis is clear that the bump in ownership would translate into 10-15mm more annual cash flow which makes total sense.   I think the issue is finding a lender that could get comfortable with this collateral profile and at what cost and terms. The lender is ultimately lending

[lumpy13]

Thanks.  Very helpful. I posed my question to Milewski about a year ago and, at that time, he said they had no interest in acquiring debt to pay off the construction loan.  It might be expensive debt, but I woiuld guess that they could find a lender, if they really tried.  

[Suppe11]

The advantage of the construction loan is....no convenants...no payback dates. So if you take on debt...and you get no cf from Ramu, to pay back the loan/interest...be it low prices, flooding of the mine, whatever...you're toast. I wouldn't do it, too risky.

[Nemesis]

@lumpy13 Ref. : Annual Management’s Discussion & Analysis (page 6) Joint Venture Debt   As part of the Joint Venture Agreement with MCC Ramu, MCC Ramu provided financing for construction and development of the Ramu Mine. This resulted in borrowing, on a non-recourse basis, to finance the original construction of the mine (“Construction Debt”) and borrowing an additional