16/06/2023
𝗣𝗡𝗥 𝗦𝗘𝗖𝗨𝗥𝗘𝗦 𝗢𝗩𝗘𝗥 𝗣𝟮𝟲𝟬 𝗠𝗜𝗟𝗟𝗜𝗢𝗡 𝗧𝗢 𝗔𝗗𝗩𝗔𝗡𝗖𝗘 𝗪𝗢𝗥𝗞 𝗢𝗡 𝗦𝗘𝗟𝗘𝗕𝗜 & 𝗦𝗘𝗟𝗞𝗜𝗥𝗞 𝗠𝗜𝗡𝗘𝗦
- Work undergoing at the 2 former BCL assets in Phikwe & Francistown
𝗧𝗵𝗲 𝗣𝗿𝗼𝗷𝗲𝗰𝘁𝘀 | 𝗡𝗶-𝗖𝘂-𝗖𝗼-𝗣𝗚𝗘
Premium Nickel Resources Limited (PNR) – the Canadian company currently resuscitating former BCL assets in Selebi Phikwe and Francistown this week announced that it has secured funding from Canadian investors : Cymbria Corporation, EdgePoint Investment Group Inc. and certain entities managed by EdgePoint for aggregate proceeds of CAD$33,999,200 (close to P340 million).
PNR said it intends to use approximately CAD$7,360,000 of the proceeds to prepay all principal and interest owing by the Company under its currently outstanding promissory note in favour of Pinnacle Island LP.
The balance of money, around CAD$ 26 million (over P260 million) will be used to advance exploration and resource development at PNRL's Selebi and Selkirk nickel, copper, cobalt, platinum-group elements sulphide mines in Botswana, including the acquisition of adjacent mineral and property rights as appropriate, and for general corporate purposes.
PNR 's Botswana operations are led by former BCL General Manager Montwedi Mphathi.
Through a combination of resource drilling and continued exploration drilling at both the Selebi and Selkirk mines, PNRL is working to establish a maiden mineral resource estimate prepared in accordance with NI 43-101.
The Company 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.
PNRL expects that the rehabilitation of the mines on this basis will actively contribute to Botswana's economic, social, climate and environmental objectives.
These mines, once they are brought back into production, are expected to be a significant source of critical minerals for aerospace, decarbonization technologies and general industrial uses, in particular, during what is forecast to be a period of significant supply shortage at a critical time in the global renewable electrification transition.
Premium Nickel Resource Limited Chief Executive Officer Keith Morrison said the funding will go a long way into advancing ongoing work at Selebi and Selkirk mines
"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 resulting to PNRL pursuant to the Financing Transactions of approximately CAD$34 million will provide us with the resources to advance both the National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") resource compliance and additional exploration drilling at the Selebi and Selkirk mines." he said
