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.