Canada Nickel upsizes private placement offering target to $21 million
Canada Nickel Company Inc. [CNC-TSXV] said that due to strong investor demand, it has increased the size of a previously announced non-brokered private placement offering that is now expected to raise up to $21 million. That marks an increase from the earlier $15 million target. The company said the upsized offering will consist of up to 14 million units priced at $1.50 per unit.
Each unit will consist of one common share and one half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at a price of $2.25 at any time for 36 months after the issue date. Closing is expected to occur on or around August 28, 2026.
Canada Nickel shares edged higher on the news, rising 0.96% or $0.015 to $1.56. The shares trade in a 52-week range of $2.59 and 77 cents.
Canada Nickel is advancing the next generation of nickel sulphide projects to deliver nickel required to feed the high-growth electric vehicle and stainless steel markets. The company said it plans to use the net proceeds of the offering to support permitting and engineering activities for the advancement of the company’s projects, repayment of outstanding debt, and working capital and general corporate purpose es.
The announcement comes after the company said it has secured Federal approval for its flagship Crawford project near Timmins, Ontario.
The company said the Minister of Environment, Climate Change and Nature has issued a positive decision statement for the Crawford project, making it the first mining project to receive a Decision Statement under Canada’s amended Impact Assessment Act, 2019.
The project is expected to contribute approximately $70 billion to Canada’s GDP and support 185,000 person-years of employment.
The company said the Minister of Environment, Climate Change and Nature has issued a positive decision statement for the Crawford project, making it the first mining project to receive a Decision Statement under Canada’s amended Impact Assessment Act, 2019.
The project is expected to contribute approximately $70 billion to Canada’s GDP and support 185,000 person-years of employment.
Crawford is also slated to become the western world’s largest nickel sulphide operation and North America’s only primary source of chromium.
Canada Nickel said a preliminary economic assessment (PEA) has confirmed robust economics for the 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.