TORONTO, ONTARIO--(Marketwired - Apr 8, 2013) - First Nickel Inc. ("FNI" or the "Company") (FNI.TO) announces that the restructuring of all of the Company's existing indebtedness (the "Refinancing") became effective today. The Refinancing includes an increase in the principal amount of the revolving credit facility (the "BNS Facility") with The Bank of Nova Scotia from US$10 million to US$15 million and an extension of the BNS Facility maturity date from May 2014 to March 2015, as well as the extension of the maturity dates of the Company's loans with each of Resource Capital Fund IV L.P, Resource Capital Fund V L.P and a fund managed by West Face Capital Inc. from December 2013 to March 2015.
The BNS Facility is backed by shareholder provided letters of credit. Availability under the BNS Facility is not conditioned upon achievement of financial covenants. The Company intends to utilize the BNS Facility primarily to manage working capital and does not expect to fully draw down the BNS Facility.
Under the applicable Toronto Stock Exchange ("TSX") rules, the Refinancing would have normally required independent shareholder approval, which would have entailed a 50 - 60 day process. As the Company's liquidity needs did not allow sufficient time to conduct a shareholder vote, FNI applied to the TSX for an exemption from the shareholder approval requirement on the basis that the Company was in serious financial difficulty. Relying on this exemption automatically initiated a de-listing review by the TSX. The Company is confident that it will be in compliance with all of the TSX continued listing requirements upon conclusion of the delisting review.
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 we operate. FNI operates its Lockerby Mine in the Sudbury Basin in northern Ontario. The Lockerby Mine is expected to produce at a rate of approximately 10 million pounds of payable nickel and approximately 7 million pounds of payable 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.
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 of obtaining financing in the near term, including completion of the Refinancing on terms satisfactory to the Company, if at all; expectations regarding future compliance with TSX continued listing requirements, 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.