Canada Nickel Announces $24 million Investment from Anglo American
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Canada Nickel Announces $24 million Investment
from Anglo American
Highlights
• Another key milestone for advancing Crawford Nickel Project towards production
• Anglo American to become a 9.9% shareholder
TORONTO, February 8, 2023 – Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV:
CNC) (OTCQX: CNIKF) is pleased to announce that the Company has entered into a Subscription
Agreement with Anglo American today to make an approximately $24 million investment in Canada Nickel
at a price of $1.95 per Common Share, a 10% premium to the 30-day volume weighted average price
(“VWAP”).
Upon completion of the private placement, Anglo American will own 9.9% of the Company’s issued and
outstanding Common Shares on a non-diluted basis. In addition, Canada Nickel has agreed to enter into
at closing a binding Offtake Term Sheet with Anglo American pursuant to which Anglo American will have
an exclusive right to purchase up to ten per cent (10%) of recoveries of nickel concentrate, iron and
chromium contained in the magnetite concentrates and any corresponding carbon credits from the
Company’s Crawford Nickel Project. Canada Nickel has also agreed to enter into a Material Transfer and
Technology Testing Agreement with Anglo American to assess opportunities to add value to Crawford
from its FutureSmart Mining™ technology program.
“We are very pleased to welcome Anglo American, a leading global mining company, as a cornerstone
investor in Canada Nickel. Today’s announcement is another key milestone as we advance Crawford
towards production.” said Mark Selby, Chair & CEO of Canada Nickel. “Our team is looking forward to
working with Anglo American to identify opportunities to apply their industry leading mining innovation
technology to add additional value to Crawford.”
Anglo American is leading global mining company with a portfolio of world -class competitive operations
and a broad range of future development options. For more information about Anglo American please
visit www.angloamerican.com
Under the terms of the agreements, Anglo American will receive ore samples from Canada Nickel for
testing, using technologies from Anglo American’s FutureSmart Mining ™ programme, with the aim of
assessing opportunities to improve processing recoveries and reduce the project’s overall energy, water
and emission footprint.
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Subscription Agreement and Investor Rights Agreement
These agreements contain customary investor rights. As of closing, Anglo American will have a pro rata
right in any future issuance of Common Shares or any securities that are or may become convertible,
exchangeable or exercisable into Common Shares to maintain its shareholding as long as they hold 7.5%
or more of the issued and outstanding shares of the Company. Anglo American will also have the right to
nominate one member to the Company’s Technical Committee and ESG Committee. If Anglo American
holds 15% or more of the issued and outstanding shares, Anglo American will have the right to nominate
one director to the Company’s board of directors.
Material Transfer and Technology Testing Agreement
This agreement addresses the collaboration between Canada Nickel and Anglo American to identify
opportunities to utilize Anglo American’s FutureSmart Mining™ programme to improve processing
recoveries and reduce the project’s overall water, energy and emission footprint. This Agreement will
remain in force until 12 months after the delivery of a sample of ore in an amount of at least one hundred
(100) tonnes by Canada Nickel to Anglo American, expected by 2024. For the duration of this agreement,
Canada Nickel agrees to deal exclusively with Anglo American in those areas where FutureSmart Mining™
technologies apply.
Offtake Term Sheet
This binding term sheet grants offtake rights to Anglo American for approximately 10% of the Company’s
metal production and carbon credits from the Crawford project until the delivery of 65kt of nickel or a
term of 15 years, whichever is later. The offtake is based on customary marketing terms and will be based
on market terms for the specific products produced. If Canada Nickel utilizes any of the Anglo American
technologies, Anglo American shall have the offtake rights to 100% of the incremental quantity of nickel
products, related products, and carbon credits produced utilizing these technologies.
The completion of the private placement and related agreements is subject to customary closing
conditions including the approval of the TSX Venture Exchange and is targeted to close on or about
February 28, 2023.
This investment is a first step in financing Crawford and complements the previously announced ongoing
work by our financial advisors at Deutsche Bank and Scotiabank. The Company has taken a number of
steps during the past few months to advance Crawford to construction through the achievement of
multiple permitting milestones, the appointment of project equity advisors, and the appointment of a
project debt finance advisor expected in the coming month.
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 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 wit h leverage to nickel in low political risk jurisdictions.
Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in
the heart of the prolific Timmins-Cochrane mining camp. For more information, please visit
www.canadanickel.com.
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For further information, please contact:
Mark Selby
Chair and CEO
Phone: 647-256-1954
Email: [email protected]
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,
completion of the transactions contemplated he rein, drill and exploration results relating to the target
properties described herein (the "Properties"), the potential of the Crawford Nickel Sulphide Project and
the Properties, timing of economic studies and mineral resource estimates, the ability to s ell marketable
materials, strategic plans, including future exploration and development results, and corporate and
technical objectives. Forward -looking information is necessarily based upon several assumptions that,
while considered reasonable, are subje ct 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, and the impact of COVID-
19 related disruptions in relation to the Company's business operations including upon its employees,
suppliers, facilities and other stakeholders. There can be no assurance that such information will prove to
be accurate, as actu al 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.