Canada Nickel arranges $32-million (U.S.) bridge loan

Executive Summary

• Canada Nickel Company Inc. has entered into a US$32 million bridge loan facility with Auramet International Inc. to advance its Crawford nickel sulphide project and repay an existing loan with Ber Tov Capital Corp.
• The facility is expected to close on or before February 9, 2026, with proceeds designated for working capital and debt repayment.
• The transaction includes significant equity kicker terms, with Auramet receiving 1.75 million one-year warrants at closing.

Key Details

• Facility Amount: US$32 million bridge loan.
• Lender: Auramet International Inc.
• Closing Date: Expected on or before February 9, 2026.
• Maturity Date: May 9, 2026.
• Interest Rate: 1.00% per month.
• Arrangement Fee: 2.5%.
• Use of Proceeds: Working capital purposes and repayment of the existing loan with Ber Tov Capital Corp. (BT Capital), originally signed May 9, 2025.
• Warrant Terms: Auramet receives 1.75 million one-year warrants at closing.
• Warrant Exercise Price: Equal to a 5% premium to the five-day volume-weighted average price (VWAP) of the company's common shares on the TSX Venture Exchange for the five consecutive trading days ending on the trading day immediately prior to the closing date.
• Hold Period: The warrants and underlying shares are subject to a four-month hold period under applicable Canadian securities laws.
• Conditions Precedent: Subject to customary conditions, including approval of the TSX Venture Exchange.

Notable Quotes

• "We are pleased to have the continued support of Auramet, our long-standing financing partner, through this $32-million (U.S.) bridge facility. This funding ensures we remain well capitalized to advance the Crawford nickel sulphide project toward construction by year-end 2026 as we complete funding discussions with government and project partners." — Mark Selby, Chief Executive Officer