Canada Nickel in $20 million partnership with Ontario First Nation
Canada Nickel Company Inc. [CNC-TSXV] and Taykwa Tagamou Nation (TTN) have announced a $20 million investment partnership, reflecting a shared commitment to advancing Canada Nickel’s flagship Crawford Project, in Timmins, Ont., while fostering economic empowerment and long-term collaboration.
It will mark the largest known direct investment into a critical minerals project in Canada by a First Nation.
TTN will invest $20 million in a convertible note that will be convertible into 16.67 million Canada Nickel common shares at a price of $1.20, representing an 8.4% interest in the company (based on its current issued and outstanding share capital). The convertible note was signed on December 13, 2024, and will have a five-year term and carry a 4.75% coupon per annum paid quarterly prior to conversion. Completion of the transaction is expected to occur in January, 2025.
Canada Nickel shares rose 1.06% or $0.01 to 95 cents. The shares trade in a 52-week range of $2.24 and 89 cents.
“This partnership exemplifies our vision of economic self-determination,’’ said TTN Chief Bruce Archibald. “By utilizing our own capital to secure a significant stake in Canada Nickel, we’re ensuring we have a true seat at the decision-making table,’’ he said. “This collaboration paves the way for future generations to thrive while maintaining our commitment to environmental stewardship and community well-being.’’
TTN’s investment not only ensures financial benefits for its community members but also positions the First Nation as a key player in the global transition to clean energy, as nickel is a critical mineral for electric vehicle batteries and other sustainable technologies. Canada Nickel’s Crawford project is poised to be Canada’s largest nickel mine.
“This transaction demonstrates what is possible when industry and First Nations work together towards a common goal,’’ said Canada Nickel CEO Mark Selby. “TTN’s leadership and vision have been instrumental in shaping this partnership.’’
Canada Nickel is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt and iron products. The company is anchored by its 100%-owned Crawford Nickel-Cobalt Sulphide project, which the company believes has the potential to become one of the world’s largest nickel-sulphide districts.
The company is also aiming to incorporate carbon capture and storage into its flagship Crawford nickel project. The company recently said Carbon capture test work confirms that it could store one million tonnes of carbon annually.
Canada Nickel recently announced the receipt of a letter of intent (LOI) from Export Development Canada, stating its interest in providing long term funding of up to US$500 million in debt financing for the development of the company’s flagship Crawford Project, in Timmins, Ont.
“EDC could consider a debt tenor of up to 18 years, subject to certain conditions,” Canada Nickel said. “EDC’s participation in project financing is subject to the successful completion of its rigorous due diligence process.’’
Agnico-Eagle Mines Ltd. (AEM-TSX, AEM-NYSE) holds a 12% stake in the company on a non-diluted basis.