China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
Canada Nickel Company (TSXV: CNC) has arranged a $10 million secured loan facility with Auramet, one of the largest physical precious metals merchants in the world, to help fund its project development activities.
The company is anchored by its 100% owned Crawford nickel-cobalt sulphide property in the Timmins-Cochrane mining camp of Ontario and said it is aiming to advance the next generation of nickel-cobalt projects to serve the electric vehicle industry, as well as the stainless steel market.
Last month, the Canadian nickel explorer expanded its footprint within the province by acquiring or earning into 13 additional projects within a 95 km radius of the Crawford property.
According to Canada Nickel, ongoing discussions with strategic investors for its projects have been extended into the new year, and the latest financing ensures the company remains well-funded through the first quarter, when the strategic investor process is expected to conclude.
The loan from Auramet will carry an interest rate of 1% per month and has an arrangement fee of 2% of the loan amount and the issuing of 250,000 two-year warrants at a strike price of C$3.94 per share on the closing date.
“Canada Nickel has made significant strides over the past year by continuing to deliver promising drilling results, delivering a robust preliminary economic assessment, demonstrating significant improvements to our metallurgical performance, and consolidating a Timmins nickel district,” CEO Mark Selby said in a press release.
