Canada Nickel Company Inc. [CNC-TSXV] has closed a $20 million convertible note with Taykwa Tagamou Nation (TTN) that was previously announced back in December, 2024. The investment partnership reflects a shared commitment to advancing Canada Nickel’s flagship Crawford Project, in Timmins, Ont., while fostering economic empowerment and long-term collaboration.
It marks the largest known direct investment into a critical minerals project in Canada by a First Nation to date.
“This transition is a significant step forward for both TTN and Canada Nickel, said Chief Bruce Archibald of Taykwa Tagamou Nation. “It demonstrates what’s possible when first nations are meaningfully included as equity partners with real decision-making authority,’’ he said. “We are proud to make this investment on behalf of our community, one that supports long-term economic benefits while advancing sustainable development on our traditional territory.”
TTN pledged to 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 were unchanged at 92 cents. The shares trade in a 52-week range of $1.48 and 73.5 cents.
“We are honoured to have Taykwa Tagamou Nation as long-term partners in the development of Crawford and the broader Timmins Nickel district,’’ said Canada Nickel CEO Mark Selby. “TTN has been a pivotal partner from the very beginning, supporting the critical infrastructure, shaping project development and now playing a key role as we unlock the overall potential of the district,’’ he said. “This investment is a reflection of TTN’s vision, leadership and commitment to co-developing projects that deliver generational benefits, for their nation, for the North and for Canada’s clean energy economy.’’
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.
