Highlights:
- Largest ever known direct investment into a critical minerals
mining project in Canada by a
First Nation
- Taykwa Tagamou Nation to hold 8.4% equity in Canada Nickel Company (upon conversion) and
the right to nominate one individual to the Company's Board of
Directors
TORONTO, Dec. 16,
2024 /CNW/ - Taykwa Tagamou Nation ("TTN") and
Canada Nickel Company Inc. ("Canada Nickel" or the
"Company") (TSXV: CNC) (OTCQX: CNIKF) are proud to announce
an investment reflecting a shared commitment to advancing Canada
Nickel's flagship Crawford Nickel Sulphide Project while fostering
economic empowerment and long-term collaboration. TTN will invest
$20 million at closing of its own
capital in a Convertible Note that will be convertible into 16.67
million Canada Nickel common shares at a price of $1.20, representing an 8.4% interest in the
Company (based on the Company's current issued and outstanding
share capital). The Convertible Note was signed on December 13, 2024. Completion of the
transaction, which is expected to occur in January 2025, is subject to certain conditions
including the approval of the TSX Venture Exchange and the receipt
of all other required third party consents.
"This partnership exemplifies our vision of economic
self-determination," said Chief Bruce
Archibald of TTN. "By utilizing our own capital to secure a
significant stake in Canada
Nickel, we're ensuring we have a true seat at the decision-making
table. This collaboration paves the way for future generations to
thrive while maintaining our commitment to environmental
stewardship and community well-being. We are proud to be setting a
new standard for First Nation partnership in the mining sector. It
demonstrates how mutual respect can drive meaningful change and
lasting benefits for both proponents and impacted First
Nations."
TTN's investment not only ensures direct financial benefits for
its community members but also positions the First Nation as a key
player in the global transition to clean energy, as nickel is a
critical mineral for electric vehicle batteries and other
sustainable technologies and the Company's flagship Crawford
Project is poised to be Canada's
largest nickel mine.
"This transaction demonstrates what is possible when industry
and First Nations work together towards a common goal," said Canada
Nickel CEO, Mark Selby. "TTN's
leadership and vision have been instrumental in shaping this
partnership. We are excited to welcome TTN as true partners in our
journey to deliver critical minerals for the clean energy
transition. As we advance our flagship Crawford Project towards a
construction decision, we also plan to unlock the potential of the
Timmins Nickel District together by completing eight resources by
mid-2025, building a future that benefits both the environment and
future generations."
Canada Nickel and TTN share a deep mutual interest in
environmental stewardship. With Canada Nickel's In-Process Tailings
carbonation, the Crawford Project is positioned to be a net-zero
operation, and one of Canada's
largest permanent carbon storage facilities, storing up to
1.5M tonnes of C02 annually during
its peak production period.
"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 Deputy Chief
Derek Archibald 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."
Convertible Note
The $20
million secured Convertible Note (the "Note") will have a
five-year term from closing and carry a 4.75% coupon per annum paid
quarterly prior to conversion. The Note provides TTN with the right
to convert into 16.67 million common shares (at a conversion price
of $1.20 per share), representing an
8.4% equity interest in the Company (based on Canada Nickel's
current issued and outstanding share capital of 181,418,982
common shares). TTN has agreed to provide a $1 million deposit on signing. TTN will also have
a right to one seat on the Company's Board of Directors for so long
as it holds the Convertible Note or, after conversion, at least 5%
of the Company's shares.
Quotes
This landmark agreement between Taykwa Tagamou
Nation and Canada Nickel will help ensure that local communities
and First Nations can share in the benefit of mineral development
in Ontario", said George Pirie, Minister of Mines for Ontario. "As the global demand for minerals
grows, Ontario is ready to be a
responsible producer of these critical resources, bringing good
jobs and economic development opportunities to communities in the
north and across the province."
- Hon. George
Pirie, Minister of Mines
"I want to congratulate Taykwa Tagamou Nation and Canada Nickel
for this historic partnership." said Stephen Crawford, Associate Minister of Mines.
"It is very exciting to see a First Nation taking an ownership
stake in a critical minerals project that will be essential to the
supply chains for electric vehicles and other clean technologies.
When First Nations and mining companies in Ontario work together, economic growth and
prosperity can be unlocked for entire regions of our province."
- Hon. Stephen
Crawford, Associate Minister of Mines
About Taykwa Tagamou Nation
Taykwa Tagamou Nation
(TTN) is a progressive First Nation in Northern Ontario, committed to achieving
economic self-determination while maintaining a strong focus on
sustainability and community well-being. TTN is leading by example
through innovative partnerships that ensure its members benefit
directly from economic opportunities while safeguarding its
cultural and environmental values for future generations.
About Canada Nickel Company
Canada Nickel Company Inc.
is advancing the next generation of nickel-sulphide projects to
deliver nickel required to feed the high-growth electric vehicle
and stainless-steel markets.
Canada Nickel is currently anchored by its 100% owned flagship
Crawford Nickel Sulphide Project in the emerging Timmins Nickel
District. Canada Nickel Company has applied in multiple
jurisdictions to trademark the terms NetZero NickelTM,
NetZero CobaltTM, NetZero IronTM and is
pursuing the development of processes to allow the production of
net zero carbon nickel, cobalt, and iron products. Canada Nickel
provides investors with leverage to nickel in low political risk
jurisdictions.
Media, Please Contact
Melanie
Paradis
Phone: 416-399-7400
Email: melanie@yourtexture.com
Sydney Oakes, Director of
Indigenous Relations and Public Affairs
Phone: 905-929-7151
Email: sydneyoakes@canadanickel.com
Cautionary Statement Concerning Forward-Looking
Statements
This press release contains certain information
that may constitute "forward-looking information" under applicable
Canadian securities legislation. Forward looking information
includes, but is not limited to, drill and exploration results
relating to the target properties described herein (the
"Properties"), the significance of drill results, the ability to
continue drilling, the impact of drilling on the definition of any
resource, the potential of the Crawford Nickel Sulphide Project and
the Properties, timing and completion (if at all) of mineral
resource estimates, the ability to sell marketable materials,
strategic plans, including future exploration and development plans
and results, corporate and technical objectives, and the completion
of assays, follow-up geophysics and further drilling.
Forward-looking information is necessarily based upon several
assumptions that, while considered reasonable, are subject to known
and unknown risks, uncertainties, and other factors which may cause
the actual results and future events to differ materially from
those expressed or implied by such forward-looking information.
Factors that could affect the outcome include, among others: future
prices and the supply of metals, the future demand for metals, the
results of drilling, inability to raise the money necessary to
incur the expenditures required to retain and advance the property,
environmental liabilities (known and unknown), general business,
economic, competitive, political and social uncertainties, results
of exploration programs, risks of the mining industry, delays in
obtaining governmental approvals, failure to obtain regulatory or
shareholder approvals. There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. All forward-looking information
contained in this press release is given as of the date hereof and
is based upon the opinions and estimates of management and
information available to management as at the date hereof. Canada
Nickel disclaims any intention or obligation to update or revise
any forward-looking information, whether because of new
information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
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SOURCE Canada Nickel Company Inc.