First Nickel secures credit facility from Canadian bank
First Nickel has closed a $10m revolving term credit facility with The Bank of Nova Scotia (BNS) in Canada to fund its ongoing mining operations.
The funds will be used to finance working capital requirements for the Lockerby mine property located in the southwest of the city of Sudbury and for general corporate purposes.
First Nickel also said that it has freed up capital tied to its Lockerby mine closure plan, replacing a letter of credit with a surety bond.
The bond ensures the full cost of the $5.9m closure plan with the company posting $2.4m as cash security in support of the bond.
First Nickel vice president and chief financial officer Steven Cresswell said, "These two transactions further strengthen our balance sheet, providing $13.5 million of additional liquidity."
First Nickel acquired the Lockerby Mine in June 2005 and commenced commercial production in 2006, extracting an additional 364,000 tonnes to October 2008 when the mine was placed on care and maintenance due to low metal prices.