First Atlantic Nickel Secures $3 Million Dollar Investment Through Issuance of Non-Dilutive Unsecured Debenture With Option to Defer Interest and Principal Payments for 5 Years
First Atlantic Nickel Corp (FANCF) has secured a $3 million senior unsecured debenture through a non-brokered debt private placement. The debenture features favorable terms, including a 5-year deferral on all interest and principal payments, with a 9.5% annual interest rate. The funding will support the company's Atlantic Nickel Project, specifically financing the Phase 2 Drill program, assays, and metallurgical testing.
Key aspects include no immediate shareholder dilution as no equity securities will be issued to the lender at closing, and no finder's fees or commissions. The debenture matures in 2030, and the company can satisfy annual interest obligations by adding amounts to the principal, issuing common shares, or cash payments. The debenture holder has the option to receive a 2% net smelter return royalty instead of principal and interest repayment.
First Atlantic Nickel Corp (FANCF) ha ottenuto un'obbligazione senior non garantita da 3 milioni di dollari tramite un collocamento privato di debito non mediato. L'obbligazione presenta condizioni favorevoli, tra cui un rinvio di 5 anni su tutti i pagamenti di interessi e capitale, con un tasso di interesse annuo del 9,5%. Il finanziamento supporterà il Progetto Nickel Atlantico dell'azienda, specificamente finanziando il programma di perforazione Fase 2, le analisi e i test metallurgici.
Le caratteristiche chiave includono l'assenza di diluizione immediata per gli azionisti poiché non verranno emessi titoli azionari al prestatore al momento della chiusura, e nessuna commissione per i mediatori o compensi. L'obbligazione scade nel 2030, e l'azienda può soddisfare gli obblighi annuali sugli interessi aumentando gli importi al capitale, emettendo azioni ordinarie o tramite pagamenti in contante. Il titolare dell'obbligazione ha la possibilità di ricevere un royalty sul ritorno di netto dalla raffinazione del 2% invece di rimborso di capitale e interessi.
First Atlantic Nickel Corp (FANCF) ha conseguido un bono senior no garantizado de 3 millones de dólares mediante una colocación privada de deuda no intermediada. El bono presenta condiciones favorables, incluyendo un aplazamiento de 5 años para todos los pagos de intereses y del capital, con una tasa de interés anual del 9,5%. La financiación apoyará el Proyecto Nickel Atlántico de la empresa, específicamente financiando el programa de perforación de Fase 2, los análisis y las pruebas metalúrgicas.
Los aspectos clave incluyen que no hay dilución inmediata para los accionistas, ya que no se emitirán valores en acciones al prestamista en el cierre, y no hay honorarios de intermediarios ni comisiones. El bono vence en 2030, y la empresa puede cumplir con las obligaciones anuales de intereses sumando montos al capital, emitiendo acciones comunes o a través de pagos en efectivo. El tenedor del bono tiene la opción de recibir un royalty del 2% sobre el retorno neto de fundición en lugar del reembolso de capital e intereses.
퍼스트 애틀랜틱 니켈 주식회사 (FANCF)는 비중개 채무 사모 배치를 통해 300만 달러 규모의 무담보 선순위 채권을 확보했습니다. 이 채권은 모든 이자 및 원금 상환을 5년간 연기하는 것을 포함하여 유리한 조건을 제공합니다. 연 이자율은 9.5%입니다. 이 자금은 회사의 애틀랜틱 니켈 프로젝트를 지원하며, 특히 2단계 시추 프로그램, 분석 및 금속 시험을 위한 자금으로 사용됩니다.
주요 사항으로는, 대출 기관에게 주식이 발행되지 않아 즉각적인 주주 희석이 없으며, 중개 수수료나 커미션도 없습니다. 채권은 2030년에 만료되며, 회사는 원금에 금액을 추가하거나 보통주를 발행하거나 현금 지급을 통해 연간 이자 의무를 이행할 수 있습니다. 채권 보유자는 원금 및 이자 상환 대신 2%의 순 용광로 수익 배당금을 받을 수 있는 옵션이 있습니다.
First Atlantic Nickel Corp (FANCF) a obtenu une obligation senior non garantie de 3 millions de dollars par le biais d'un placement privé de dette non intermédié. L'obligation présente des conditions favorables, y compris un report de 5 ans sur tous les paiements d'intérêts et de capital, avec un taux d'intérêt annuel de 9,5%. Le financement soutiendra le Projet Nickel Atlantique de l'entreprise, en finançant en particulier le programme de forages de la Phase 2, les analyses et les tests métallurgiques.
Les aspects clés incluent qu'il n'y a pas de dilution immédiate des actionnaires puisque aucun titre de participation ne sera émis au prêteur lors de la clôture, et aucune commission ou frais de chercheur. L'obligation arrive à maturité en 2030, et l'entreprise peut satisfaire ses obligations annuelles d'intérêts en ajoutant des montants au capital, en émettant des actions ordinaires ou en effectuant des paiements en espèces. Le titulaire de l'obligation a la possibilité de recevoir une redevance de 2 % sur le retour net de la fusion au lieu d'un remboursement du capital et des intérêts.
First Atlantic Nickel Corp (FANCF) hat sich eine ungesicherte vorrangige Anleihe über 3 Millionen US-Dollar durch eine nicht vermittelte Schuldprivatplatzierung gesichert. Die Anleihe bietet günstige Konditionen, einschließlich einer 5-jährigen Stundung aller Zins- und Kapitalzahlungen, mit einem jährlichen Zinssatz von 9,5%. Die Finanzierung wird das Atlantic Nickel Project des Unternehmens unterstützen und speziell das Bohrprogramm der Phase 2, Analysen und metallurgische Tests finanzieren.
Wichtige Aspekte sind, dass es keine sofortige Verwässerung der Aktionäre gibt, da bei der Schließung keine Eigenkapitalwertpapiere an den Kreditgeber ausgegeben werden und keine Findergebühren oder Provisionen anfallen. Die Anleihe läuft 2030 aus, und das Unternehmen kann die jährlichen Zinsverpflichtungen erfüllen, indem es Beträge dem Kapital hinzufügt, Stammaktien emittiert oder in bar zahlt. Der Anleiheinhaber hat die Möglichkeit, anstelle einer Rückzahlung von Kapital und Zinsen eine 2%ige Nettorenzeuteilung zu erhalten.
- Secured $3 million non-dilutive funding through debenture
- Favorable 5-year deferral on interest and principal payments
- No immediate shareholder dilution
- No finder's fees or commissions required
- Flexible interest payment options (cash, shares, or principal addition)
- 9.5% annual interest rate on debenture
- Potential future dilution if interest is paid in shares
- Early repayment requires 130% of principal amount before fourth anniversary
VANCOUVER, British Columbia, Feb. 10, 2025 (GLOBE NEWSWIRE) -- First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the "Company") is pleased to announce that it has entered into an agreement dated February 9, 2025, to issue a
This strategic investment marks a significant milestone for the Company, providing it with a non-dilutive source of capital to support the development of the Company's district scale Atlantic Nickel Project.
The Debenture is the largest individual capital funding transaction in First Atlantic's history and contains favourable terms, including a 5-year deferral on all interest and principal payments. No equity securities will be issued to the lender on closing, ensuring no immediate dilution to the Company. Additionally, there were no finder's fees of cash or warrants issued as the Company closed the transaction directly with the lender.
Highlights:
$3 Million in Proceeds: The$3 million in non-dilutive proceeds from the Debenture will fully fund the Company's Phase 2 Drill program, assays and metallurgical testing.- RPM Zone Phase 1: Phase 1 Drill core assay results anticipated soon.
- RPM Zone Phase 2: Phase 2 Drill permits approved with road construction nearing completion. Updates to be provided shortly.
- Strategic Capital: The
$3 million in new funding from a strategic investor provides strong financial backing for the Company's Atlantic Nickel Project exploration and development. - No Dilution: No equity securities are required to be issued to the lender under the Debenture.
- No Commissions: No commissions, finder's fees, or broker warrants were issued as the Private Placement was initiated and completed between the Company and the lender.
- 5-Year Maturity: The Debenture is not required to be repaid until maturity in 2030 and the Company is entitled to satisfy the annual interest obligations under the Debenture by adding such amounts to the principal amount outstanding under the Debenture.
For further information, questions, or investor inquiries, please contact Rob Guzman at First Atlantic Nickel by phone at +1 844 592 6337 or via email at rob@fanickel.com.
"We are thrilled to secure this significant
The proceeds from the Debenture will fund the fully permitted Phase 2 Drilling program and preliminary metallurgical testing at the Atlantic Nickel Project as detailed in the Company's news release dated January 15, 2025. Following the closing of the Private Placement, the Company anticipates an accelerated news cycle in the coming weeks, with updates from the completed Phase 1 Drill program and the commencement of Phase 2 Drilling.
Transaction Terms
The Debenture will bear interest at an interest rate of
The Company may satisfy interest payments due prior to maturity in one of three ways, by:
| (i) | adding the interest to the principal amount of the Debenture; | |
| (ii) | issuing common shares ("Common Shares") to the lender; or | |
| (iii) | payment in cash, and interest payable on maturity may be satisfied pursuant to items (ii) or (iii). |
If the Company elects to issue Common Shares to satisfy interest payments, the Common Shares will be issued at the greater of: (i) the 20-day volume-weighted average price of the Common Shares; or (ii) the minimum price permitted by the Exchange. The Company may not elect to issue Common Shares if such issuance would result the lender owning or controlling more than
The Debenture will mature five years from the date of issue (the "Maturity Date"). In the event of a change of control of the Company or a project transfer, the holder may redeem the Debenture at a price equal to
On or after the third anniversary of the issue date of the Debenture and before the fourth anniversary, the Company may elect to prepay all (but not less than all) of the principal and accrued interest under the Debenture by paying
The Debenture holder may, at its option, at any time until 5:00 p.m. (Toronto time) on the Maturity Date, elect to receive a
No finder's fees are payable in connection with the Private Placement. Closing of the Private Placement remains subject to receipt of Exchange approval. All securities issued pursuant to the Private Placement are subject to a statutory four-month hold period.
Investor Information
The Common Shares trade on the Exchange under the symbol "FAN", the American OTCQB Exchange under the symbol "FANCF" and on several German exchanges, including Frankfurt and Tradegate, under the symbol "P21".
Investors can get updates about First Atlantic by signing up to receive news via email and SMS text at www.fanickel.com. Stay connected and learn more by following us on these social media platforms:
https://x.com/FirstAtlanticNi
https://www.facebook.com/firstatlanticnickel
https://www.linkedin.com/company/firstatlanticnickel/
FOR MORE INFORMATION:
First Atlantic Investor Relations
Robert Guzman
Tel: +1 844 592 6337
Email: rob@fanickel.com
Disclosure
Adrian Smith, P.Geo., is a qualified person as defined by NI 43-101. The qualified person is a member in good standing of the Professional Engineers and Geoscientists Newfoundland and Labrador (PEGNL) and is a registered professional geoscientist (P.Geo.). Mr. Smith has reviewed and approved the technical information disclosed herein.
About First Atlantic Nickel Corp.
First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) is a Canadian mineral exploration company developing the
First Atlantic aims to be a key input of a secure and reliable North American critical minerals supply chain for the stainless steel and electric vehicle industries in the USA and Canada. The Company is positioned to meet the growing demand for responsibly sourced nickel that complies with the critical mineral requirements for eligible clean vehicles under the US IRA. With its commitment to responsible practices and experienced team, First Atlantic is poised to contribute significantly to the nickel industry's future, supporting the transition to a cleaner energy landscape. This mission gained importance when the US added nickel to its critical minerals list in 2022, recognizing it as a non-fuel mineral essential to economic and national security with a supply chain vulnerable to disruption.
Neither the 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.
Forward-looking statements:
This news release may include "forward-looking information" under applicable Canadian securities legislation. Such forward-looking information reflects management's current beliefs and are based on a number of estimates and/or assumptions made by and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, statements pertaining to the use of funds from the Private Placement, receipt of Exchange approval to close the Private Placement and issue the Debenture, the Company's objectives, goals or future plans, and statements and estimates of market conditions. Readers are cautioned that such forward-looking information are neither promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of exploration activities, environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. Additional factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on http://www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks, requires substantial expenditures, and may not result in the discovery of mineral deposits that can be mined profitably. Furthermore, the Company currently has no mineral reserves on any of its properties. As a result, there can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
We seek safe harbour.
1 https://home.treasury.gov/news/press-releases/jy1939
FAQ
What are the terms of First Atlantic Nickel's (FANCF) $3 million debenture?
How will First Atlantic Nickel (FANCF) use the $3 million debenture proceeds?
What are the early repayment terms for FANCF's February 2025 debenture?
What royalty option is available to the FANCF debenture holder?
