Victory Nickel Restructures Secured Debt
Toronto, Ontario (FSCwire) - Victory Nickel Inc. (“Victory Nickel” or the “Company”) (CSE:NI, www.victorynickel.ca) today announced that it has completed the restructuring of its secured debt in the amount of $5,500,000 which was to mature on January 31, 2018. The amount has been increased to $7,050,000 to include accrued interest and the maturity date has been extended 18 months to July 31, 2019 (the “Amended Secured Loan”). Other terms of the Amended Secured Loan remain the same as the existing secured debt except that the Company was to issue 2,500,000 shares at a deemed price of $0.05 as of December 31, 2017 and will issue an additional 2,500,000 shares on December 31, 2018 should the debt not be repaid.
“We are pleased to have the continued support of our secured lender. Although the price of oil has increased from its lows, fracking activity in the geographic area serviced by the Company’s frac sand plant in Medicine Hat Alberta has not seen a significant increase in activity. Frac sand prices are increasing but have not returned to the highs of 2014. As previously announced, the refurbishing of the wet plant at the company’s 7P Plant near Medicine Hat Alberta is completed and working well and approximately 5,000 tons were washed before freeze up. The price of nickel is seeing signs of improvement and is expected to perform well in the near future as demand for nickel in batteries grows. The Company’s projects are sulphide deposits which produce the high quality nickel necessary for electric car batteries,” said Rene Galipeau, CEO. “We continue to look at growth opportunities which are complementary to our existing frac sand activities and to strengthen our balance sheet. With the support of our lenders and suppliers, we are getting there.”
About Victory Nickel
Victory Nickel Inc. is a Canadian company with four sulphide nickel deposits containing significant NI 43-101-compliant nickel resources and a significant frac sand resource at its Minago project. Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing properties, Minago, Mel and Lynn Lake (currently under option to Corazon Mining Ltd.) in Manitoba, and Lac Rocher in northwestern Québec. Through a wholly-owned subsidiary, Victory Silica Ltd., Victory Nickel at its 7P Plant frac sand processing facility in Seven Persons Alberta, has established itself in the frac sand business prior to commencing frac sand production and sales from Minago.
Contact:
| Victory Nickel Inc. | ||
| René Galipeau or Sean Stokes | ||
| Phone: 416.363.8527 | ||
| Fax: 416.626.0890 | ||
| Email: admin@victorynickel.ca | ||
| www.victorynickel.ca |
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/VictoryNickel01032018.pdf
Source: Victory Nickel Inc. (CSE:NI)
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