Canada Nickel (TSXV:CNC; OTCQX:CNIKF) announced on Sept. 11, 2024, that it has received a support letter from a leading financial institution expressing interest in providing up to $500 million in long-term debt financing for the development of its Crawford nickel sulphide project in the Timmins-Cochrane mining camp. The terms and conditions, including pricing, will depend on further due diligence and discussions involving lenders, their advisors and Canada Nickel’s financial team.
This new support letter follows the one issued by Export Development Canada (EDC) on Aug. 30, 2024. Together, these letters represent approximately $1.18 billion in senior debt interest, a substantial part of Canada Nickel’s financing goal for Crawford.
“We are very pleased with this additional indication of interest as it is another substantial step towards advancing our financing package for Crawford,” said Canada Nickel CEO Mark Selby.
Along with EDC’s previously announced letter of interest for $680 million, Canada Nickel is also counting on refundable tax credits related to critical minerals and carbon capture and storage. These credits are expected to exceed $815 million and support the initial phase of Crawford’s development. The company’s financial advisors – Deutsche Bank, Scotiabank and Cutfield Freeman – are working to secure the remaining project funding. Construction is expected to begin once permits are received which is anticipated by mid-2025.
EDC’s potential involvement includes considering a debt term of up to 18 years, depending on the successful completion of its due diligence process. The new letter of interest, combined with the tax credits, highlights the Canadian government’s commitment to supporting critical mineral projects like Crawford.
The Crawford property, located in a greenfield area with no history of mining or advanced exploration, has been the site of surface drilling for about three years.
Canada Nickel’s anticipated annual production is 42,000 tonnes of nickel.
For more information, visit www.CanadaNickel.com.
