Canada Nickel Company Inc V.CNC

Off-Take Financing...First Glance...Crunching Numbers..

[Digger0144]

As per the news release the Off-Take Option offered to Samsung included a 10% ownership stake regarding the Crawford Property for the amount of basically 100 million US. upfront.

At first glance it looked good...many...including Selby put a value on Canada Nickel at about 1 billion US.  However, the figure has no merit in my opinion without the cash being put on the table...it would appear that the market does not believe it at this time.  Selby himself stated that with this press release it would put the stock price at $7.00...really?

Would that not be nice?...they could finance part of the @ 2 Billion US price tag of the Crawford Project with an issue of their own stock.  That is what puzzles me...most projects that are "this good" should in theory have the means to use their stock to help finance the project...not in this case. Not only that with the purchase of the 15.6 million shares that would put Samsungs stake with a value of 109 million Canadian...Wow!  Something does not add up...I wish it was this easy...to be sure!  What a profit in such a short time.

Remember...back in November 2023 the stock price hit a low of $.89.

As apapas1973 mentioned, Selby has been in talks with 20 possible off-take entities and it is quite possible he may sign on a couple...ok..let us take a look using recent history of the Samsung option.

If he signs up similar entities he would have to give up 10% each time?  If he signs up a total of three for example...he would have 300 million US for Crawford...but...wait a minute now Canada Nickel only owns 70% of the project.  This cannot work...I was looking for an off-take agreement that would involve a minimum of 200 million US.  Even with 300 million it is not close to being enough...potential financers with not put up the rest...too much risk involved...not going to happen.

Listen, I would love for all of us to make a bundle...however, this is not adding up for me.

Now...Agnico Eagle has made the best investment with minimal risk...they are astute when it comes to board decisions regarding investment opportunities. In my opinion and due to the fact that they purchased flow-through shares which can only be used for exploration purposes they are going to push for a more thorough exploration program in the region and further pursue more definition drilling at Crawford before they commit anything further.  I still to this day do not believe that they have put enough holes into Crawford...let us see.  In their press release they mentioned "early stage" investment...going to take years for further drilling.

I can tell you with the utmost degree of confidence that no entity is going to purchase the company to the tune of "big bucks" before doing follow up drilling of their own @ their team of professionals...to be sure!

All the Best!
Digger0144

[Zibo510]

FWIW at the stage CNC is at it's well worth looking at the Lassonde Curve. The Lassonde curve is a graphical representation of the typical lifecycle of a Junior Mining Company from Exploration to Development. It breaks the cycle down into distinct stages each, of which is important for investors to understand in order to guide their expectations and make better investment decisions

[EndZonefor7]

Way too much effort for a guy who posts on SH once every 6 months. If it don't add up then hit the road. Your opinion smells to high heaven.  Better yet why dont you short us but I don't think you have the jam. 

[Chieff]

Move along if it's a negative scenario for you. 

[apapas1973]

Digger, Mark is hoping for half or more of the equity for this  project from govt contributions. He's going to take advantage of certain provincial and federal incentives. How much we receive in the end is anyone's guess. Some of it will also come from other offtakers. And yes, whether we like it or not, there will be some dilution further down to complete the project. Mark might not

[EndZonefor7]

Exactly apapas. Why would you not take free government money and supply chain partners cash? This is a whole new ball game in a global critical minerals war. Being stuck in the 70's leaves you out in the cold.  Samsung in for $300 million (or more) for 30% times 3 whales plus government cash has been the plan laid out publicly by Mark for a long time now, but now they land a whale and

[Digger0144]

Hey apapas1973... Thanks for the feed back...just trying to make sense of it all.  Timmins is my home town...I miss it.  I would love for this to be built and make money at the same time.  It is dear to my heart and thus my continued interest in Canada Nickel.. I know this area better then most...been in every mine in the region throughout my career...both on surface and

[EndZonefor7]

So for all your mining experience all I see is loser dogs in your other picks the last 2 years. Extra effort to trash CNC and no others.  Sounds like some local sour grapes. Mark not hire you or something or you miss staking Crawford ? 

[EndZonefor7]

FPX popped 33% before news so sell on news is suddenly uncommon? FPX has First Nations issues and almost 300 million shares plus in the middle of nowhere. Big diff from CNC. 

[JStrummer66]

To me the most important thing from the Samsung deal is that CNC got it's first offtake iwith a major player. I used to work in land development.  Any time we built a shopping center the key was to get a strong anchor store.  Did we get $100 million from the anchor store to be in our mall?  NO.  We often had to give the anchor store chain free land and they would build

[idlefreebird]

digger , that's strange in all the years we exchanged conversations you never told me you were from Timmns ...actualy it was more like a Sudbury guy and not even sure if you were a northerner..but your lack of DD on the financials from July's 7 million to todays 61 million almost get's me questioning your motive ...and if your doubting the 43-101 report on the resource maybe you should

[Chieff]

I'm from Timmins as well and you're embarrassing us. what neighbourhood did you grow up in?  And for someone trying to make sense of it all, you sure are quick to take an extremely negative approach. Again, very irresponsible attempt to cast so much doubt on this project. 

[rockstar]

You bring up excellent points Apapas! very informative thanks for posting.

[Yoldstein]

Whats your intent digger?? im bullish. thanks for the novel. im surpised you did'nt leave a number at bottom sign off to call. your like the white knight protecting us sharehholders