TSX-V-listed Canada Nickel has closed its previously announced investments from Anglo American for gross proceeds of C$26.15-million and also concurrently closed its “bought-deal” prospectus offering for C$18.21-million.
The company will use the proceeds from the Anglo American investment and the sale of shares under the offering for the exploration and advancement of its Crawford nickel/cobalt/sulphide project and its other Ontario properties, the repayment of a loan and for general working capital purposes.
In terms of the agreement with Anglo American, the major will provide technology expertise to the Crawford project and has the exclusive right to buy up to 10% of recoveries of nickel concentrate, iron and chromium contained in the magnetite concentrates and any corresponding carbon credits from the Crawford project.
The investment is part of Anglo's approach to expand its nickel product offering with additional battery-grade nickel for use in electric vehicles, complementing nickel production from its platinum group metals mines in South Africa, as well as ferronickel from its nickel assets in Brazil, which is mostly destined for the global stainless steel industry.
Located in a tier-one mining jurisdiction in Ontario, the Crawford project is one of the biggest undeveloped, bulk tonnage nickel sulphide resources in the world. If brought into production, the project is expected to play an important role in expanding the available supply of battery-grade nickel.