Canada Nickel raising $4.97 million for Timmins District projects
Canada Nickel Company Inc. [CNC-TSXV] has announced details of a $4.97 million non-brokered private placement of flow through shares, with proceeds earmarked for the advancement of the company’s Nickel District assets in Northern Ontario. The company said it will issue 2.4 million common shares that will qualify as flow-through shares at an issue price of $2.07 per flow-through share.
The announcement comes after Canada Nickel said it had signed a memorandum of understanding (MOU) with GeoRedox Corp., launching a partnership to develop the world’s first stimulated geologic hydrogen well on the site of Canada Nickel’s Crawford project near Timmins.
The project will test GeoRedox’s proprietary technology for producing zero-carbon hydrogen from ultramafic rock formations – the same geology that underlines Canada Nickel’s twenty-plus projects in the Timmins Nickel District – and represents a foundational step towards a zero-carbon industrial cluster in Northern Ontario. Hydrogen is used extensively in metal production.
GeoRedox will fund the demonstration program in full. Canada Nickel will contribute site access, rock samples, technical expertise, data, and other resources necessary for project planning and implementation at Crawford.
Commenting on the $4.97 million flow-through financing, Canada Nickel CEO Mark Selby said: “With Crawford in the final stage towards a permitting decision expected by early summer and continued progress on government funding, this flow-through financing will allow us to continue to advance our Timmins Nickel District where we have now published eight separate resources with a nineth coming later this quarter.” “We believe that the scale of the Timmins Nickel District is unique among nickel developers and positions us to benefit from the continued improvement in global nickel markets and renewed interest in nickel from investors.’’
On Thursday, Canada Nickel shares were unchanged at $1.65 and trade in a 52-week range of $2.59 and 77 cents.
Canada Nickel said a preliminary economic assessment (PEA) has confirmed robust economics for its 100%-owned Crawford project. Canada Nickel recently said it had entered into a non-binding MOU with Glencore Canada Corp. to examine the potential use of Glencore’s Kidd concentrator and metallurgical site in Timmins for the treatment and processing of material mined from the Crawford project.
Crawford is located 40 kilometres north of Glencore’s operations.
Canada Nickel said the PEA demonstrates the potential to develop a phased conventional nickel sulphide concentrator, producing nickel concentrates and magnetite concentrates. The operation is designed to have an open pit mine with a plant potential of 120,000 tonnes per day.
Canada Nickel was in the news recently when the company released drill results from a regional exploration program on properties in the Timmins, Ont., region. “Our regional exploration program intended to highlight the potential for multiple Crawford-sized discoveries has taken several big steps forward,’’ said Selby. Results released by the company were from the Reid, Nesbitt and Deloro properties, which are all located less than 20 kilometres from the Crawford project.
Resource World Magazine Inc. has prepared this editorial for general information purposes only and should not be considered a solicitation to buy or sell securities in the companies discussed herein. The information provided has been derived from sources believed to be reliable but cannot be guaranteed. This editorial does not take into account the readers investment criteria, investment expertise, financial condition, or financial goals of individual recipients and other concerns such as jurisdictional and/or legal restrictions that may exist for certain persons. Recipients should rely on their own due diligence and seek their own professional advice before investing.