By Joe Hoppe

Anglo American PLC said Wednesday that it will buy a 9.9% minority interest in Canada Nickel Co., worth around 22.6 million Canadian dollars ($16.9 million).

The FTSE 100 mining company said that it will provide technology expertise to the owner of the Crawford nickel project in Ontario, Canada, and has the exclusive right to purchase up to 10% of nickel concentrate, iron and chromium, and corresponding carbon credits from the project.

The investment is part of the company's approach to expand its nickel product offering, it said. The private placement and related agreements are subject to customary closing conditions, including approval from the Toronto Stock Exchange, and is targeted for completion around Feb. 28.

Based on Canada Nickel's market cap at 1328 GMT of C$228.6 million, a 9.9% stake is worth around C$22.6 million.

Shares in Anglo American at 1329 GMT were down 26.0 pence, or 0.8%, at 3,361.0 pence.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

February 08, 2023 08:50 ET (13:50 GMT)

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