First Nickel Inc. ("FNI" or the "Company") announces that it has entered into agreements with its lenders to increase the amount available under the Company's existing credit facilities (the "Transaction"). The Transaction involves an increase in the principal amount of the revolving credit facility (the "BNS Facility") with The Bank of Nova Scotia ("BNS") from US$15 million to US$18 million and a corresponding increase to the standby letter of credit posted by Resource Capital Fund V L.P. ("RCF V") from US$7.5 million to US$10.5 million.
As a result, the Company also amended its credit facility with RCF V that backstops the RCF V Letter of Credit. Further details of the Company's credit facilities are contained in the Company's press release dated April 1, 2013.
The increased financing will provide the Company with liquidity that will enable it to fund capital expenditures at the Lockerby Mine.
The Transaction has been approved by the Toronto Stock Exchange. The Transaction constitutes a related party transaction for purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying upon the exemptions from the requirements to obtain a formal valuation and minority shareholder approval in Sections 5.5(a) and 5.7(a) of MI 61-101, respectively.
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 FNI operates. The Company's Lockerby Mine in the Sudbury Basin in northern Ontario is producing at a rate of approximately 13 million pounds of contained nickel and approximately 8 million pounds of contained 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.