TORONTO, ONTARIO--(Marketwired - Nov. 29, 2013) - First Nickel Inc. ("FNI" or the "Company") (TSX:FNI) announces that it has entered into agreements with its lenders to increase the amount available under the Company's existing credit facilities (the "Transaction"). The Transaction involves an increase in the principal amount of the revolving credit facility (the "BNS Facility") with The Bank of Nova Scotia ("BNS") from US$15 million to US$18 million and a corresponding increase to the standby letter of credit posted by Resource Capital Fund V L.P. ("RCF V") from US$7.5 million to US$10.5 million. As a result, the Company also amended its credit facility with RCF V that backstops the RCF V Letter of Credit. Further details of the Company's credit facilities are contained in the Company's press release dated April 1, 2013.
The increased financing will provide the Company with liquidity that will enable it to fund capital expenditures at the Lockerby Mine.
The Transaction has been approved by the Toronto Stock Exchange. The Transaction constitutes a related party transaction for purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying upon the exemptions from the requirements to obtain a formal valuation and minority shareholder approval in Sections 5.5(a) and 5.7(a) of MI 61-101, respectively.
About FNI
FNI is a Canadian mining and exploration company. The Company's mission is to be the most dynamic North American emerging base-metal mining company in which to work and invest, and to be respected in the communities in which FNI operates. The Company's Lockerby Mine in the Sudbury Basin in northern Ontario is producing at a rate of approximately 13 million pounds of contained nickel and approximately 8 million pounds of contained copper annually, providing a strong base from which to grow the Company. In addition to the Lockerby Mine, the Company owns exploration properties in the Sudbury Basin, the Timmins region of northern Ontario and the Belmont region of Eastern Ontario. FNI's shares are traded on the TSX under the symbol FNI.
Forward-Looking Statements
Certain statements contained in this news release may contain forward-looking information about FNI. Forward-looking information can often be identified by the use of forward-looking terminology such as "anticipate", "believe", "continue", "estimate", "expect", "goal", "intend", "is confident", "target", "potential", "objective", "may", "plan" or "will" or the negative thereof or variations thereon or similar terminology. Forward-looking information may include, but is not limited to: the continued operation of the Lockerby Mine; expectations regarding future financial or operating performance of the Company and its projects; the future price of metals; the long term supply and demand for nickel; continuation of exploration activities; mineral reserve and mineral resource estimates; the realization of mineral resource estimates; costs of production and key supplies; capital, operating and exploration expenditures; forecasts of sales and production; costs and timing of the development of new and existing deposits; costs and timing of future exploration; the requirements for additional capital; government regulation of mining operations; environmental risks, reclamation expenses and/or title disputes or claims.
By its nature, forward-looking information is based on certain factors and assumptions which involve known and unknown risks, uncertainties and other factors which may cause the actual results, realization of mineral resources, performance or achievements of the Company, financial position or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Accordingly, actual events may differ materially from those implied by any forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speak only as of the date the statements were made and readers are also advised to consider such forward-looking information while considering the risk factors set forth in the Company's most recent Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com. Such forward-looking statements are made as at the date of this news release. The Company disclaims any intention or obligation to publicly update or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.