Wedoany.com Report-Dec 19,Following final approval in January 2025, Taykwa Tagamou Nation in Ontario will hold 8.4 per cent equity interest in Canada Nickel Company
Canada Nickel Company has a new $20 million investor in its Crawford Nickel Sulphide Project: the Taykwa Tagamou Nation.
The deal is touted as one of the largest First Nation direct investments into a Canadian critical minerals mining project.
“This partnership exemplifies our vision of economic self-determination,” says Bruce Archibald, chief of Taykwa Tagamou Nation (TTN), in a press statement.
“[W]e’re ensuring we have a true seat at the decision-making table. We are proud to be setting a new standard for First Nation partnership in the mining sector.”
TTN and Canada Nickel signed the deal in mid-December. Completion of the transaction, pending final approvals, is expected in January 2025.
Terms of the deal
TTN’s $20 million investment into Canada Nickel’s Crawford Project is a secured convertible note.
The note has a five year term from closing and offers a 4.75 per cent coupon per year. TTN may convert the note into 16.67 million shares, for an 8.4 per cent equity interest in Canada Nickel.
As well, TTN gets one board seat while it holds the note, or, at least five per cent of Canada Nickel’s shares.
“TTN has always sought to lead with vision and action, and we’re proud that this partnership sets a new benchmark for how First Nations can engage with the mining sector,” said Derek Archibald, deputy chief of TTN.
“This agreement demonstrates what can be achieved when First Nations are creative with their own-source revenues, and respect, collaboration, and equity are at the forefront.”
Crawford Nickel Sulphide Project
Canada Nickel company is based out of Timmins, Ont., while TTN is located 17 kilometres south east of Cochrane, Ont. Meanwhile, the Crawford Project is located 43 km north of Timmins and slightly south west of Cochrane.
The project proposal comprises of the construction of an open-pit nickel-cobalt mine and on-site metal mill. The site would operate for 41 years and produce 275,000 tonnes of mine ore per day. The mill ore input capacity is anticipated to be 120,000 tonnes per day.
“TTN’s leadership and vision have been instrumental in shaping this partnership,” says Canada Nickel CEO, Mark Selby.
“As we advance our flagship Crawford Project towards a construction decision, we also plan to unlock the potential of the Timmins Nickel District together…building a future that benefits both the environment and future generations.”
According to a recent impact assessment, the Crawford Project anticipates extracting and processing nickel, iron, chromium, cobalt, palladium and platinum.
Canada Nickel intends the Crawford Project to be a net-zero mine. It will also act as a carbon storage facility, “storing up to 1.5M tonnes of C02 annually during its peak production period.”
Comments on the project’s impact assessment report are open to the public until February 7, 2025.
