First Nickel Inc. announced that it has entered into a loan facility with Resource Capital Fund V L.P. in the aggregate principal amount of $5.0 million. The facility matures on December 31, 2013 and the proceeds will be used for working capital and corporate requirements. The Facility closed on January 15, 2013 and is subject to the satisfaction of certain post-closing conditions.

The facility will bear an interest rate of 12.0% per annum, paid quarterly in cash or, at RCF's option, common shares of the company valued at the volume weighted average market price for the five days prior to the date the payment is due. The facility will be secured by a first ranking perfected encumbrance over all assets associated with the company's projects, all shares or equity interests of the Company and all intercompany debt. In connection with the facility, a 3.0% establishment fee will be paid to RCF in common shares of the company valued at the volume weighted average market price for the five days prior to the closing date.