Canada Nickel Company

Financials:

Primary ticker: TSXV:CNC
Stage of development: Exploration
Primary minerals: Nickel, Cobalt, Iron
Project to promote: Crawford Nickel-Cobalt Sulphide Project
Project location: Canada
Website: www.canadanickel.com
Corporate presentation: Click here

Canada Nickel is advancing the next generation of high quality, high potential nickel-cobalt projects to deliver the metals needed to power the electric vehicle revolution and feed the high growth stainless steel market. The Company possesses industry leading nickel expertise and is focused on low risk well-established mining jurisdictions. Canada Nickel is currently focused on its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp.
The Company is also pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products, and has applied in multiple jurisdictions to trademark the terms NetZero NickelTM, NetZero CobaltTM, NetZero IronTM.

Cash: C$24.4M

Debt: C$12.95M

Major shareholders:
Spruce Ridge Resources – 9.53%
Management & Board – 5%
Noble Mineral Exploration – 3%
Management Ownership – 5%

Management Profile

Mark Selby – Chairman, CEO & Director

 

Mr. Selby, Chairman and CEO, was formerly President & CEO of RNC Minerals (Royal Nickel Corporation) where he led a team that successfully raised over $100 million and advanced the Dumont nickel-cobalt project from initial resource to a fully permitted, construction ready project. He has held a number of senior management roles with Quadra Mining, Inco, and Purolator Courier, and was a partner at Mercer Management Consulting.
Since 2001, Mr. Selby has been recognized as one of the leading authorities on the nickel market. He graduated from Queen’s University with a Bachelor of Commerce (Honours) and has also served on the boards of multiple junior mining companies and is currently a Director and Chair of Orford Minerals.

What is your rationale for taking part 121 Mining Investment?

We are looking for cornerstone institutional investors who are interested in nickel, and its role in the clean energy revolution.

What recent news would you like to highlight to investors attending?

On 9 March 2022 – Canada Nickel announced that due to significant investor demand, the Company has agreed to amend its agreement with Red Cloud Securities Inc. as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters that includes Clarksons Platou Securities AS., to increase the size of the Company’s previously announced offering from C $25.0 million to C $45.0 million. The Company plans to use the net proceeds to repay the Company’s current loan with Auramet and for general working capital and corporate purposes such as advancing the project through Feasibility Study.

On 15 February 2022 – Canada Nickel announced further metallurgical results at its Crawford Nickel Sulphide Project which delivered what the Company believes is the highest nickel sulphide concentrate grade from a locked cycle test. Total nickel recovery of 63% from low nickel feed grade of 0.19% nickel

On 24 January 2022 – Canada Nickel announced assay results from its Mahaffy, Dargavel, Kingsmill, and MacDiarmid properties, and provided an update on drilling and corporate activities. In addition to completed drill assay results, partial assays have been received to date from 11 holes drilled at the Company’s Nesbitt property – these results have also been in line with expectations and will be released when all assays are received.

On 5 January 2022 – Canada Nickel announced that it has closed a secured loan facility with Auramet International of US$10 million previously announced on December 21, 2021. The proceeds will be used to ensure the Company remains well-funded as it continues to aggressively advance the Crawford Nickel Sulphide Project through the first quarter of 2022 when the Company expects to conclude its strategic investor process.

What are your key goals for the next 3, 6 and 12 months?

3 Months:
Following the positive outcome of the PEA, the Company is advancing the Crawford Project through additional studies including exploration programs aimed at in-fill drilling to upgrade current resources to the measured category; additional metallurgical studies and a feasibility study.

6 Months:
Continue working towards Feasibility Study on the Crawford Nickel-Cobalt Sulphide project.

12 Months:
Crawford Nickel Sulphide Project Feasibility Study – expected in 2022

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Nickel market is highly volatile and may see some short-term downward pressure in the near-term. We are focused on delivering new nickel-cobalt projects for the medium and long-term where there is consensus that there are very few new nickel project outside Indonesia to meet the needs of the EV industry next decade.

From a project perspective, we will leverage the learning that our team developed by advancing Dumont for RNC Minerals, to ensure that we are able to as cost-effectively and efficiently advance Crawford.

What do you think makes your company such a compelling investment?

We have a unique combination of the right commodity (nickel), a great project (new nickel-cobalt sulphide discovery with large scale potential), adjacent to infrastructure in an established mining camp (Timmins, Ontario, Canada), led by an experienced team (team which successfully advanced the Dumont nickel-cobalt project).

The EV market requires significant quantities of nickel by next decade with little visibility on new nickel supply outside Indonesia and we believe that advancing Crawford in this market is very well-timed and will be very well-received by investors and the nickel industry.