Canada Nickel Provides Corporate Update

Rhea-AI Summary

Canada Nickel (OTCQX: CNIKF) extended the repayment date of its US$32 million loan facility with Auramet International from August 9, 2026 to November 9, 2026. In return, the company will pay an extension fee of US$856,288 and issue 5,500,000 one-year warrants at an exercise price of $1.52 per share, a 5% premium to the 5-day VWAP to July 27, 2026, subject to TSX Venture Exchange approval.

According to Canada Nickel, previously issued 3,500,000 warrants at $1.81 from a prior extension will be cancelled. The company also reported it is in the final stage of the federal permitting process and continues to target a construction decision in 2027.

Positive

• US$32 million loan maturity extended by three months to November 9, 2026
• New 5,500,000 warrants priced at a 5% premium to recent VWAP
• Prior 3,500,000 warrants at higher $1.81 strike cancelled

Negative

• Loan extension requires US$856,288 cash extension fee
• Issuance of 5,500,000 new warrants creates potential shareholder dilution
• Short, one-year warrant term concentrates dilution risk in near term

AI-generated analysis. How Rhea-AI works. Not financial advice.

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TORONTO, July 28, 2026 /PRNewswire/ -- Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQX: CNIKF) today announced that it has extended the repayment date of the US$32 million loan facility (the "Loan") originally announced February 6, 2026 with Auramet International, Inc. ("Auramet") from August 9, 2026 to November 9, 2026.

Mark Selby, CEO and Director of Canada Nickel Company said "I am pleased with this continued support from Auramet extending the facility in-line with our current expectations on completion of various financing initiatives.  We are now in the final stage of the federal permitting process and look forward to the delivery of the Minister's Decision Statement shortly as we continue to advance towards a construction decision in 2027."

Loan Extension

In connection with the extension of the repayment date of the Loan, the Company will pay an extension fee of US$856,288 and will grant 5,500,000 common share purchase warrants (the "Extension Warrants") to Auramet, each exercisable for a one-year period to acquire one common share of the Company ("Common Shares") at an exercise price equal to $1.52, a 5% premium to the 5 day VWAP ending on July 27 2026. The Loan Extension and Extension Warrants are subject to the approval of the TSX Venture Exchange. 

In connection with the extension of the repayment date of the Loan, the 3,500,000 common share purchase warrants with an exercise price of $1.81 per share that were previously issued by the Company to Auramet in May 2026 in connection with the first extension of initial Loan advance will be cancelled and rendered ineffective pursuant to the requirements of the TSX Venture Exchange. 

About Auramet

Auramet is a private company established in 2004 by seasoned professionals who have assembled a global team of industry specialists with over 400 years combined industry experience. It is one of the largest physical precious metals merchants in the world and has provided over $1.5 billion in term financing facilities to date. Auramet offers a full range of services including physical metals trading, metals merchant banking (including direct lending), and project finance advisory services to all participants in the precious metals supply chain.

About Canada Nickel

Canada Nickel is advancing the next generation of nickel-sulphide projects to deliver nickel required to feed the high growth electric vehicle and stainless steel markets. Canada Nickel has applied in multiple jurisdictions to trademark the terms NetZero Nickel^TM, NetZero Cobalt^TM and NetZero Iron^TM and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel provides investors with leverage to nickel in low political risk jurisdictions. Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp. For more information, please visit www.canadanickel.com.

For further information, please contact:

Mark Selby
CEO
Phone: 647-256-1954
Email: info@canadanickel.com

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward looking information includes the ability of the Company to finance and construct the Crawford Nickel Project, deliver nickel required to feed the high growth electric vehicle and stainless steel markets, and the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Readers should not place undue reliance on forward looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Canada Nickel to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. There are no assurances that Crawford will be placed into production. Factors that could affect the outcome include, among others: inability to repay the loan or comply with the covenants set out in the loan agreement; the ability to obtain the approval of the TSX Venture Exchange for the matters described herein; the actual results of development activities; project delays; inability to raise the funds necessary to complete development; general business, economic, competitive, political and social uncertainties; future prices of metals or project costs could differ substantially and make any commercialization uneconomic; availability of alternative nickel sources or substitutes; actual nickel recovery; conclusions of economic evaluations; changes in applicable laws; changes in project parameters as plans continue to be refined; accidents, labour disputes, the availability and productivity of skilled labour and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities; mineral resource estimates relating to Crawford could prove to be inaccurate for any reason whatsoever; additional but currently unforeseen work may be required to advance to the feasibility stage; and even if Crawford goes into production, there is no assurance that operations will be profitable. Although Canada Nickel has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and Canada Nickel disclaims any obligation to update any forward looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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SOURCE Canada Nickel Company Inc.

FAQ

What did Canada Nickel (OTCQX: CNIKF) announce on July 28, 2026 about its Auramet loan?

Canada Nickel extended the repayment date of its US$32 million Auramet loan from August 9, 2026 to November 9, 2026. According to Canada Nickel, the extension involves a cash fee and new share purchase warrants, subject to TSX Venture Exchange approval.

What are the key terms of Canada Nickel’s US$32 million loan extension with Auramet?

The loan maturity is extended to November 9, 2026, with an extension fee of US$856,288 and 5,500,000 new warrants. According to Canada Nickel, each warrant is exercisable for one year at $1.52 per share, pending TSX Venture Exchange approval.

How many new warrants will Canada Nickel issue to Auramet and at what price?

Canada Nickel will issue 5,500,000 common share purchase warrants to Auramet, each with a $1.52 exercise price. According to Canada Nickel, these warrants are exercisable for one year and priced at a 5% premium to the 5-day VWAP ending July 27, 2026.

What happens to the 3,500,000 previously issued Canada Nickel warrants at $1.81?

The 3,500,000 warrants previously issued to Auramet at a $1.81 exercise price will be cancelled and rendered ineffective. According to Canada Nickel, this cancellation occurs in connection with the new loan extension and follows TSX Venture Exchange requirements.

When is Canada Nickel’s US$32 million Auramet loan now due for repayment?

The US$32 million loan is now due for repayment on November 9, 2026, extended from August 9, 2026. According to Canada Nickel, this three-month extension aligns with its expectations around completing various financing initiatives underway in 2026.

What does the Auramet loan extension mean for Canada Nickel (CNIKF) shareholders?

The extension provides short-term financing flexibility but adds a US$856,288 fee and 5,500,000 potential new shares via warrants. According to Canada Nickel, the warrants’ $1.52 exercise price, set at a 5% premium to VWAP, may dilute existing shareholders if exercised.

What project timeline update did Canada Nickel provide alongside the loan extension?

Canada Nickel reported it is in the final stage of the federal permitting process and expects the Minister’s Decision Statement shortly. According to Canada Nickel, the company continues to advance toward a potential construction decision targeted for 2027, subject to approvals.