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The SPA Loan is secured by a general security agreement
Victory Nickel Inc. (TSX:NI) announced today the receipt of formal notice of default and demand for payment of principal and accrued interest from the holder of a US$3,000,000 unsecured promissory convertible note.
As previously disclosed, the Company failed to pay quarterly interest payments due June 30, and September 30, 2015 on approximately US$6,000,000 of promissory convertible notes and on the US$5,150,000 securities purchase and line of credit agreement. The SPA Loan is secured by a general security agreement with first charge over all of the assets of the Company and its subsidiaries. The Company is considering the Notice and will provide an update when additional information is available.
On an unrelated matter, the Company also advises that Mr. Steve Harapiak, President and COO, has decided to retire, effective immediately. Steve has been with the Company since 2008 and has been instrumental in advancing the feasibility study and permitting of the Minago nickel project in Manitoba. “On behalf of the Board of Directors I would like to thank Steve for his valuable contribution to Victory Nickel,” said René Galipeau, Vice-Chair and CEO. “We will miss Steve and wish him a long and enjoyable retirement.”
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 in Manitoba, and Lac Rocher in northwestern Québec, and by evaluating opportunities to expand its nickel asset base. Through a wholly-owned subsidiary, Victory Silica Ltd., Victory Nickel is establishing a presence in the frac sand market prior to commencing frac sand production and sales from Minago.
