Hydro Power Transmission Service AgreementHere's a new one in the MD&A. Lining up power to the mine is a solid first indicator.
On February 25, 2022 Canada Nickel entered into a Transmission Service (Wheeling) and Project Development Agreement (the "Crawford TSA") with Transmission Infrastructure Partnerships 1 Limited ("TIP1") pursuant to which TIP1 has agreed to develop, construct and operate a 230kV transmission line and related facilities to connect the Crawford Project to the Hydro One Porcupine Transmission System (the "Crawford Transmission Network") and enable Canada Nickel to receive electricity supply for the Crawford Project.
The initial term of the Crawford TSA will commence on the date of completion of the applicable conditions precedent, discussed below, and end on the twenty-fifth anniversary of the date the Phase 2 System (as defined below) reaches its commercial operation date. The Crawford TSA also includes a renewal term of five additional years, subject to the parties election to renew. The effectiveness of the Crawford TSA is subject to a number of conditions precedent including receipt of all applicable regulatory approvals, commencement of applicable environmental assessments, securing the applicable real property surface rights, and a number of ancillary agreements relating to the development, financing, and operation of the Crawford Transmission Network.
The customer charges to be paid by Canada Nickel to TIP1 under the term of the Crawford TSA shall be determined by an independent engineer, consistent with comparable market charges, and are intended to allow TIP1 to recover the full cost of designing, developing, constructing, owning and operating the Crawford Transmission Line over the term and to provide a reasonable rate of return on TIP1's invested capital