TORONTO, ON / ACCESSWIRE / March 31, 2021 / Victory Nickel Inc. ("Victory Nickel" or the "Company") (CSE:NI) today announced that it has engaged Grant Thornton Limited ("GTL") as its financial advisor to assist the Company with restructuring options relating to the Company's unsecured debt (the "Restructuring").
On February 10, 2021, the Company announced it has sold its Minago nickel property in northern Manitoba to Silver Elephant Mining Corp. ("Silver Elephant") on the terms announced in the news release of January 22, 2021. In a separate transaction, Silver Elephant acquired 100% of the Company's debt held by the Company's secured lender (the "Secured Debt") that was concurrently restructured in a reduced amount of approximately US$5.4 million.
"The Silver Elephant transaction was a significant step forward for Victory Nickel," said Sean Stokes, Interim CEO. "Not only was the the secured debt reduced substantially the sale generates approximately US$5.75 million in liquidity in staged payments providing the Board of Directors with the opportunity to assess alternatives to move the Company forward for the benefit of all stakeholders."
There are no assurances that the Company will be able to restructure its remaining unsecured debt and there is no certainty as to what further steps, if any, the debtors, or the Company, will take.
About Victory Nickel
Victory Nickel Inc. is a Canadian company with significant NI 43-101 sulphide nickel resources in Manitoba and Quebec, containing significant NI 43-101-compliant nickel resources. Additionally, through a wholly-owned subsidiary, Victory Silica Ltd., Victory Nickel has established itself as a producer and marketer of industrial sands in the western Canadian marketplace from its 7P Plant in Medicine Hat, Alberta.
CONTACT:
Victory Nickel Inc.
Sean Stokes
Email: [email protected]
www.victorynickel.ca
Forward-Looking Information:
This news release contains certain forward-looking information. All information, other than information regarding historic fact that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future is forward-looking information. The forward-looking information contained in this news release, including information related to the completion and outcome of any debt restructuring activities reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. The forward-looking information contained in this news release is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, the Company disclaims any obligation to update or modify such forward-looking information, either because of new information, future events or for any other reason. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
SOURCE: Victory Nickel Inc.