Canada Nickel Secures US$20 Million Bridge Loan Facilitated by BT Capital and Provides Corporate Update
Rhea-AI Summary
Canada Nickel Company (OTCQX: CNIKF) has secured a US$20 million bridge loan from BT Strategic Mineral Assets LP, facilitated by BT Capital. The loan, maturing on February 9, 2026, carries a 1% monthly interest rate and includes a 2.5% arrangement fee. As part of the deal, the lender received 5 million one-year warrants exercisable at $0.94.
The funds will be used to advance the company's flagship Crawford Nickel Sulphide Project and repay an existing Auramet loan. Additionally, Canada Nickel expects to close a C$20 million convertible note investment with Taykwa Tagamou Nation during the week of May 12th, 2025.
The company has also acquired 32 mining claims totaling 656 hectares in the Timmins area, issuing 70,000 common shares to vendors. Furthermore, it has settled US$750,000 of Auramet debt by issuing 1,050,909 common shares at $0.99 per share.
Positive
- Secured US$20 million bridge loan to advance Crawford Nickel Project
- Expected closing of additional C$20 million convertible note investment
- Strategic expansion through acquisition of 656 hectares of mining claims
- Successful debt settlement with Auramet through share issuance
Negative
- High monthly interest rate of 1% on the bridge loan
- Significant dilution through warrant issuance (5 million warrants) and share issuances for debt settlement and property acquisition
- Additional debt burden with new US$20 million loan
News Market Reaction
On the day this news was published, CNIKF declined 1.60%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
"We're pleased that BT Capital, a long-time participant in our financings, has facilitated this
Loan Terms
The loan was provided by BT Strategic Mineral Assets LP, whose anchor investor is Baronet Capital. It matures on February 9, 2026, carries interest at
This secured loan includes customary positive and negative covenants for a transaction of this nature and remains subject to final approval by the TSX Venture Exchange (conditional approval has been received). The security covers all personal property and real property. Proceeds will be used to repay the Company's remaining balance of the loan from Auramet and for general working capital purposes.
Corporate Update: Property Acquisition
As part of its regional consolidation strategy in the
Corporate Update: Debt Settlement
The Company has issued 1,050,909 common shares at a deemed price of
About BT Capital
Ber Tov Capital Corporation is a leader and the originator of structured flow-through financings, enabling clients to access the benefits of flow-through shares while mitigating market risk. Since its founding in 2006, BT Capital has advised clients on more than
For further information, please contact:
Avi Wachsman
Phone: (416) 514-0475
Email: avi@btcapital.ca
About Baronet Capital
Baronet Capital is a family office investment firm established in 2023, focused on prudent, impactful investments that preserve and grow generational wealth while contributing to community well-being. Backed by a substantial capital base, Baronet emphasizes secured, long-term investments over speculative growth and is committed to aligning financial stewardship with meaningful, lasting value.
For further information, please contact:
Jonathan Shields, CIO
Phone: (416) 902-6780
Email: jshields@baronetcapital.ca
About Canada Nickel
Canada Nickel Company Inc. 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 Company has applied in multiple jurisdictions to trademark the terms NetZero Nickel™, NetZero Cobalt™ and NetZero Iron™ 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
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 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 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 are the terms of Canada Nickel's (CNIKF) new US$20 million bridge loan?
How is Canada Nickel (CNIKF) using the proceeds from the bridge loan?
What property acquisition did Canada Nickel (CNIKF) announce in May 2025?
How did Canada Nickel (CNIKF) settle its debt with Auramet?
What additional financing is Canada Nickel (CNIKF) expecting to close?
