Samsung SDI invests in Canada Nickel

15th January 2024

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online


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Korean battery and electronics manufacturer Samsung SDI has made an $18.5-million investment in Canada Nickel, the owner of the Crawford nickel/cobalt project in the Timmins-Cochrane mining camp, becoming an 8.7% shareholder.

Samsung SDI has also been granted the right to purchase a 10% equity interest in the Crawford project for $100.5-million upon a final construction decision.

By exercising this right, Samsung SDI will have the right to 10% of the nickel and cobalt production from the Crawford project over the life-of-mine (LoM) and the right to an additional 20% of Crawford's production for 15 years extendable by mutual agreement. The offtake rights will be based on mutually agreed terms.

"We are very pleased to welcome Samsung SDI as an investor and project partner with Canada Nickel," said Canada Nickel CEO Mark Selby.

"As we advance the Crawford nickel sulphide project, it is critical to form long-term partnerships with companies that truly understand how crucial this production is for electric vehicle supply chains across North America and Europe. As one of the world's leading electric vehicle battery manufacturers, Samsung SDI not only understands our vital role in these supply chains, but also believes in Canada Nickel's vision for responsible, large-scale, net-zero carbon nickel production. Together, our companies are paving the way for a more sustainable future."

Earlier this month, Canada Nickel welcomed Agnico Eagle as a 12% shareholder. The company on January 2 completed a private placement consisting of 19.6-million units at C$1.77 per flow-through unit, raising C$34.7-million.

The October 2023 bankable feasibility study (BFS) for Crawford estimates that the mine will produce 83-million pounds (38 000 t) of nickel a year over a 41-year life, with production of 48 000 t/y nickel, 8 000 t/y of cobalt, 13 000 oz/y of palladium and platinum, 1.6-million tonnes a year of iron and 76 000 t/y of chrome over its 27-year peak period.

The BFS calculates net LoM C1 cash costs of $0.39/lb nickel, placing Crawford in the first quartile of the cost curve. Net all-in sustaining costs are $1.21/lb nickel.

On average, Crawford is projected to earn revenue of $1-billion a year and deliver free cashflow of $546-million.

The BFS pegs capital costs at $1.9-billion for the initial phase, which will have a throughput of 60 000 t/y. The second phase, planned for commissioning during the fourth year, will double mill throughput to 120 000 t/d at a cost of $1.6-billion.

Edited by Creamer Media Reporter



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