Resource Capital Fund V L.P. Acquires Shares of First Nickel Inc.

Jan 21, 2013, 16:31 ET from Resource Capital Fund V L.P.

DENVER, Jan. 21, 2013 /CNW/ - Resource Capital Fund V L.P. ("RCF V") reports that it has entered into a US$5 million loan facility (the "Facility") with First Nickel Inc. ("First Nickel") and acquired 2,495,840 common shares of First Nickel ("Common Shares") as payment of an establishment fee for the Facility. The Facility is not convertible into Common Shares. If RCF V elects to receive all of the interest due under the Facility over the full term as Common Shares, RCF will acquire additional Common Shares valued at approximately $600,000, to be priced based on the volume weighted average market price for the five days prior to the date the payment is due.

As a result of the transaction noted above, Resource Capital Fund IV L.P. ("RCF IV") and RCF V, affiliated entities by way of a common management company (RCF Management LLC), will, on a combined basis, own 137,407,846 Common Shares, representing approximately 26.2% of the issued and outstanding Common Shares of First Nickel and 39.0% on a fully diluted basis (assuming conversion of an existing convertible loan between RCF IV and First Nickel and exercise of their outstanding warrants, but no exercise of any other outstanding securities of First Nickel or payment of interest in Common Shares under any loan facility).

The securities were acquired for investment purposes. RCF IV and RCF V will evaluate their investment in First Nickel from time to time and may, based on such evaluation of market conditions and other circumstances, increase or decrease shareholdings in First Nickel as circumstances require.

For further information and to obtain a copy of the early warning report filed under applicable Canadian securities laws in connection with the transactions hereunder, please see First Nickel's profile on the SEDAR website www.sedar.com.


SOURCE Resource Capital Fund V L.P.