First Nickel Closes a US$10 Million Loan Facility with The Bank of Nova Scotia
TORONTO, ONTARIO -- (Marketwire) -- 05/18/12 -- First Nickel Inc. ("First Nickel", "FNI" or the "Company") (TSX: FNI) is pleased to announce that it has entered into a US$10 million revolving credit facility with The Bank of Nova Scotia ("BNS facility") with an initial 2 year term. Funds from the BNS facility will be used to finance working capital requirements for the Lockerby mine and for general corporate purposes.
FNI is also pleased to announce that it has freed up capital tied to its Lockerby mine closure plan, replacing a letter of credit with a surety bond. The bond guarantees the full cost of the $5.9 million closure plan with the Company posting $2.4 million as cash security in support of the bond. The letter of credit had previously been secured by a $5.9 million restricted term deposit which is now fully available for the Company's use.
"These two transactions further strengthen our balance sheet providing $13.5 million of additional liquidity," said Steven Cresswell, Vice President and Chief Financial Officer.
About First Nickel Inc.
First Nickel 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 is in the process of ramping up production at its Lockerby nickel / copper mine in the Sudbury Basin in northern Ontario. Once the Lockerby Mine reaches full production (expected by end of 2012), it is expected to produce at a rate of approximately 10 million pounds of nickel and approximately 7 million pounds of copper annually, providing a strong base of cash flow from which to grow the Company. In addition to the Lockerby nickel mine, the Company owns exploration properties in the Sudbury Basin, the Timmins region of northern Ontario, and the Belmont region of Eastern Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.
Cautionary Statement Regarding Forward-Looking Information
Certain statements contained in this news release may contain forward-looking information about First Nickel. Forward-looking information can often be identified by the use of forward-looking terminology such as "anticipate", "believe", "continue", "budget", "forecast", "estimate", "schedule", "expect", "goal", "intend", "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 resumption of operations at Lockerby mine and the continued operation thereof; availability of financing in the future; 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 management's discussion and analysis for the year ended December 31, 2011 under the heading "Risks and Uncertainties" and under the heading "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2011. 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.
Contacts:
First Nickel Inc.
Steven J. Cresswell
Vice President & CFO
416 362-7050
scresswell@firstnickel.com
CHF Investor Relations
Robin Cook
Senior Account Manager
416 868 1079 x 228
robin@chfir.com