- Canada Nickel Company (TSXV:CNC) has closed a brokered private placement with Agnico Eagle Mines (TSX:AEM) for flow-through funding of C$34.7 million
- The company will use the funds to advance its Timmins Nickel District, which is highlighted by its C$2.5 billion after-tax NPV8% Crawford Nickel Project
- Canada Nickel Company is developing nickel sulphide projects to supply nickel to the electric vehicle and stainless steel markets
- The nickel mining stock is down by 40.93 per cent year-over-year, but has gained 26.67 per cent since inception in 2020
Canada Nickel Company (TSXV:CNC) has closed a brokered private placement with Agnico Eagle Mines (TSX:AEM) for flow-through funding of C$34.7 million.
Agnico Eagle now holds a 12 per cent insider stake in the company on a non-diluted basis, and a 15.6 per cent stake on a partially diluted basis. Agnico is the world’s third-largest gold producer, coming in at more than 3 million ounces in 2023 across 11 operating mines in Canada, Mexico, Finland and Australia.
As per a signed rights agreement, subject to certain ownership thresholds, Agnico may nominate one member to Canada Nickel’s board of directors, as well as invest in future issuances of common shares (or any convertible securities) to maintain its pro rata ownership.
Canada Nickel will use the proceeds to continue developing its Timmins Nickel District, which is highlighted by its C$2.5 billion after-tax NPV8% Crawford Nickel Project, representing the world’s second-largest nickel reserve and its second-largest resource. The company will also continue to advance numerous offtake initiatives slated for completion by Jan. 18, 2024.
Financing details
Canada Nickel will issue 19.6 million units priced at C$1.77, with each unit consisting of one flow-through common share and 0.35 flow-through common share purchase warrants.
Each warrant grants the option to purchase one Canada Nickel common share for C$1.77 for 36 months from the closing date of the offering. This timeline may be accelerated, with 30 days’ notice, if CNC shares equal or exceed C$2.65 for at least 20 consecutive trading days.
All securities issued are subject to a resale restriction of four months as dictated by Canadian securities legislation.
“We are very pleased to welcome Agnico Eagle, one of the largest mining companies in Canada, as an investor in Canada Nickel,” Mark Selby, chief executive officer of Canada Nickel Company, said in a statement. “Agnico Eagle has a long operating history in the Abitibi region, deep technical expertise and a track record of operating success with its core open-pit, bulk-tonnage gold assets in the Abitibi at both Canadian Malartic and Detour Lake.”
Canada Nickel Company is developing nickel sulphide projects to supply nickel to the electric vehicle and stainless steel markets. The company is also pursuing the production of net-zero-carbon nickel, cobalt and iron products.
Canada Nickel Company (TSXV:CNC) last traded at C$1.14 per share. The nickel mining stock is down by 40.93 per cent year-over-year, but has gained 26.67 per cent since inception in 2020.
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