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Premium Nickel Announces Financing Transactions Totalling Approximately $34 Million

Transaction Details

Fort Capital Partners is pleased to announce that Premium Nickel Resources Ltd. (TSXV: PNRL) (“PNRL”) has entered into financing agreements with Cymbria Corporation (TSX:CYB) (“Cymbria”), EdgePoint Investment Group and certain entities managed by it (collectively “EdgePoint”) for total gross proceeds of $33,990,200 to refinance PNRL’s existing term note with Pinnacle Island LP and to advance exploration and resource development at PNRL’s Selebi and Selkirk sulphide mines in Botswana.

PNRL is committed to redeveloping the mines through modernization and implementation of mining best practices to improve mine safety and efficiency, reduce power consumption, adopt alternative energy sources and minimize water usage. These mines are expected to be a significant source of critical materials facing a supply shortage at a critical time in the global renewable electrification transition.

The financing agreements include $16,249,200 in equity for the issue and sale of 14,772,000 units at a subscription price of $1.10 per unit. Each unit will be comprised of one common share of PNRL and 22.5% of one whole common share purchase warrant at an exercise price of $1.4375.

In addition to the equity financing, PNRL has closed on a $15.0M three-year term loan from Cymbria including 2,000,000 common share purchase warrants at an exercise price of $1.4375 per share.

Concurrent with the closing of the equity financing and term loan, Cymbria has also agreed to pay $2,750,000 to two subsidiaries of PNRL to acquire a right to participate with such subsidiaries in the exercise of certain contractual rights pertaining to the repurchase of net smelter returns royalty on the Selebi mine.

Keith Morrison, CEO of Premium Nickel, commented: “I would like to welcome the EdgePoint team to PNRL and thank Pinnacle Island for their long-term support. This debt refinancing pursuant to the term loan will extend our current debt maturity for three years until June 2026. The total funding will provide us with the resources to advance both the National Instrument 43-101 – Standards of Disclosure for Mineral Projects resource compliance and additional exploration drilling at the Selebi and Selkirk mines.”

Fort Capital Partners acted as financial advisor to PNRL on the financing transactions.