Investors...Not Partners...Let Us Review the Facts...The fact is that Samsung has come in as an investor...not a partner...according to their due diligence and investment thesis at this point in time Canada Nickel is valued at $1.57 per share. Yes, they have signed an off-take agreement but in my opinion until they put up the 100 million US the paper that it is written on is worthless. They have risked 25 million Canadian, barely a scratch when it comes down to it.
The Bankable Feasiblity Study indicated that they need 2 Billion US to build the mine...Wow!
Agnico Eagle has also come on as an investor...again...not a partner to the tune of 35 million Canadian. However, the shares that they acquired are on a Flow-Through basis @ $1.77 which means that the risk that they have taken on is basically almost zero...yes zero. They pay taxes to the Canadian Government each year...after the first year they can right off 70% of their investment due to the fact that Canada Nickel relinquished there rights to do so. Instead of paying the government they have decided to invest in Canada Nickel. They purchased 19.6 million shares, if this goes south they will dump the shares at some point...overhang to be sure!
According to the financial statement Canada Nickel at the end of July, 2023 had 7.5 million in cash and cash equivalents, they can only use the investment from the flow-through shares for exploration purposes only which leaves the 25 million for general and administrative purposes. However, they must pay back the loan of 16 million Canadian to Auramet which leaves them with 9 million to add to the bank account. They more then likely will be forced to raise cash soon enough.
The time to buy this is when tax loss selling was overdone, quite the opportunity to the brave...what a pass. I am currently out of the stock and will stay on the sidelines to see where this stock settles down to.
In my opinion they have a lot more work to do to de-risk the Crawford Project and will not be rewarded as some might think. I believe that Selby wants to unload this to protect his personal investment which is sizeable...he has found no serious takers at this time....the clock is ticking.
What are the future Catalyst's? Basically, all the news is out.
As for the Carbon Capture...it must be proven on a large scale basis...so far only a small Pilot Plant has been used as the case study...it will take years and many millions more to prove it out.
High risk play to be sure...trading stock...thumbs up...let us see where it settles down to...after that we may get another move up by those investors that feel that they missed the ride.
All the Best!
Digger144