Canada Nickel Company (CNC(TSXV) has announced details of a $4.97 million non-brokered private equity placement, with the proceeds going towards developing 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 has signed a memorandum of understanding with GeoRedox Corp, to launch a partnership to develop the world’s first geostimulated hydrogen well at Canada Nickel’s Crawford project site near Timmins.
The project will test GeoRedox’s proprietary technology to produce carbon-free hydrogen from ultramafic rock formations – the same geology that underpins Canada Nickel’s two dozen projects in the Timmins Nickel region – and represents a foundational step towards a carbon-neutral industrial cluster in northern Ontario. Hydrogen is widely used in metal production.
GeoRedox will fully fund the demonstration program. Canada Nickel will contribute site access, rock samples, technical expertise, data and other resources needed to plan and execute the project at Crawford.
Commenting on the $4.97 million stream financing, Mark Selby, CEO of Canada Nickel, said: “With Crawford in the final stretch towards a permitting decision expected by early summer and continued progress on government funding, this stream funding will allow us to further develop our Timmins Nickel region where we have now deployed eight separate resources with a ninth due later this quarter.” “We believe the size of the Timmins Nickel District is unique among nickel developers and allows 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 were trading in a 52-week range of $2.59 and 77 cents.
Canada Nickel said a preliminary economic assessment (PEA) confirmed strong economics for the 100%-owned Crawford project. Canada Nickel recently said it had entered into a non-binding memorandum of understanding with Glencore Canada Corp. To examine the potential use of Glencore’s Kidd condenser and mining site in Timmins to process and process material extracted from the Crawford Project.
Crawford is located 40 kilometers north of Glencore’s operations.
Canada Nickel said PEA demonstrates the potential for developing a conventional staged nickel sulphide concentrator to produce nickel concentrates and magnetite concentrates. The operation is designed to have an open pit mine with a production capacity of 120,000 tons per day.
Canada Nickel was in the news recently when the company released drilling results from a regional property exploration program in the Timmins, Ontario, area. “Our regional exploration programme, aimed at highlighting the potential of multiple Crawford-sized discoveries, has taken several major steps forward,” Selby said. “The results the company released were from the Reid, Nisbett and DeLauro properties, which are all located less than 20 kilometers from the Crawford project.”
