North American Nickel (TSX.V:NAN) is a mineral exploration company whose flagship property is the Maniitsoq property in Greenland. Maniitsoq is a district scale project covering numerous high-grade nickel-copper sulphide occurrences. The 70km plus long belt is situated along, and near, the southwest coast of Greenland, which is ice free year round.
North American Nickel Inc. has, subject to approval from the TSX Venture Exchange, entered into a term loan with its major shareholder, the Sentient Group.
Pursuant to the terms of the loan, Sentient will advance $4.5-million to the company. These proceeds will enable the company to make commitments in relation to its planned exploration program for 2016. The loan is due on April 30, 2017, and has been made on an interest-free basis. Subject to approval of the TSX-V, Sentient is to be paid 952,380 common shares in the capital of the company (the equivalent value of 2.2 per cent of the principal amount of the loan) as a fee for advancing the loan. The loan is subject to early prepayment in the event that, during the term of the loan, the company completes a private placement for gross proceeds of $2-million or more.
The entering into of the loan was unanimously approved by the board of directors of NAN, a director with a relationship with Sentient having declared a conflict and not participating in discussions or voting.
The transaction is a related party transaction as defined in Multilateral Instrument 61-101. The company is relying upon the exemptions set out at sections 5.5(a) and 5.7(a) of MI 61-101, from the requirements for a valuation and majority of the minority approval pursuant to MI 61-101. The company is not aware of any prior valuations having been made within the prior 24 months.