Canada Nickel Company Inc. [CNC-TSXV] has announced details of a brokered private placement that is expected to raise $8.0 million. The company plans to use the net proceeds to advance it’s wholly-owned Crawford nickel sulphide project in Timmins, Ont.
Canada Nickel said it has struck a deal with a syndicate of agents in connection with a best efforts private placement of 9.4 million units priced at 85 cents per unit. Each unit will consist fo one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share for $1.20 at any time on or before the date, which is 36 months after closing, which is set to occur by June 26, 2025.
The agents have been granted an option to sell up to an additional 2.35 million units at the offering price, a move that could generate up to $2.0 million in additional proceeds. That option can be exercised in full or in part up to 48 hours prior to the closing date of the offering.
Canada Nickel shares eased 10.1% or $0.095 to 84.5 cents in early trading Thursday. The shares trade in a 52-week range of $1.33 and 73.5 cents.
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.C
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.
Canada Nickel was in the news recently when it announced the closing of 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.
