Canada Nickel Secures C$15M in Oversubscribed Private Placement to Advance Crawford Project

• Canada Nickel closed an oversubscribed C$15 million bought-deal private placement to advance its Crawford Nickel Sulphide Project toward construction decision by year-end 2026
• The Crawford project holds the world's second-largest nickel reserve (3.8Mt contained nickel) and is positioned to become the third-largest nickel sulphide operation globally
• Strong strategic backing from Agnico Eagle (10.0%), Samsung SDI (7.2%), Anglo American (6.3%), and Taykwa Tagamou Nation (7.1% on conversion) validates project economics
• Project economics show US$2.8 billion after-tax NPV with 17.6% IRR, producing 48ktpa nickel at first-quartile costs (US$0.39/lb C1 cash cost)
• Indonesia's tightening grip on global nickel supply (61% market share) creates urgent need for politically stable, low-carbon nickel sources outside Southeast Asia

Introduction: Why Crawford Matters Now

The global nickel market faces a critical juncture. Indonesia now controls more nickel supply than OPEC controlled oil at its 1973 peak, creating unprecedented political risk for battery manufacturers and stainless steel producers. Against this backdrop, Canada Nickel Company's successful C$15 million financing signals growing investor confidence in politically stable nickel sources.

The November 24, 2025 announcement that underwriters fully exercised their over-allotment option demonstrates strong institutional demand. Red Cloud Securities led the syndicate in placing 12.5 million units at C$1.20 per unit, with each unit including one share and one-half warrant exercisable at C$1.80 for 36 months.

This financing arrives as Crawford advances through federal permitting, with Environmental Impact Statement filed in November 2024 and Front End Engineering Design completed in March 2025. The project targets construction start by year-end 2026, positioning Canada Nickel to deliver first production by 2028 into a market increasingly concerned about supply concentration.

Company Overview: Building North America's Next Major Nickel Producer

Canada Nickel Company focuses exclusively on developing the next generation of nickel sulphide projects in Ontario's prolific Timmins mining district. The company holds strategic advantages that separate it from typical junior miners: a 100%-owned flagship asset with bankable economics, established infrastructure access, and partnerships with industry leaders across the battery and mining sectors.

The company's market position reflects this differentiation. Trading on the TSX Venture Exchange under ticker CNC at C$1.45, Canada Nickel commands a C$315 million market capitalization with 217.3 million basic shares outstanding. The 30-day average daily volume of 616,000 shares provides adequate liquidity for institutional participation.

Strategic shareholders provide more than capital. Agnico Eagle's 10.0% stake brings deep Canadian mining expertise, Samsung SDI's 7.2% position connects Crawford to battery supply chains, and Anglo American's 6.3% holding validates the project's technical fundamentals. The Taykwa Tagamou Nation's 7.1% position (on conversion) establishes crucial Indigenous partnership supporting project permitting.

The Crawford Project: Scale Meets Economics

Crawford's resource scale positions it among global nickel elite. The project holds proven and probable reserves of 1.7 billion tonnes grading 0.22% nickel, containing 3.8 million tonnes of nickel metal, the world's second-largest nickel reserve behind only Russia's Norilsk. Additional measured and indicated resources total 2.6 billion tonnes at 0.24% nickel (6.0Mt contained), with inferred resources of 1.7 billion tonnes at 0.22% nickel (3.7Mt contained).

The March 2025 Front End Engineering Design improved project economics versus the October 2023 bankable feasibility study. After-tax net present value at 8% discount rate increased to US$2.8 billion from US$2.5 billion, while internal rate of return improved to 17.6% from 17.1%. These figures exclude additional benefits from Canada's new Carbon Capture Utilization and Storage tax credits, which could add another US$100 million to NPV.

Production scale matches the resource base. Crawford will process 120,000 tonnes per day through two construction phases, reaching peak production of 48,000 tonnes per year nickel over a 27-year period. Life-of-mine production totals 1.6 million tonnes nickel, 58 million tonnes iron, and 2.8 million tonnes chromium over 41 years.

Strategic Significance: Addressing Supply Concentration Risk

Indonesia's dominance of nickel supply creates systemic risk for Western manufacturers. The Southeast Asian nation now controls 61% of global nickel production, surpassing OPEC's 54% control of oil supply at its 1973 peak. Recent Indonesian policy shifts demonstrate this market power: mining licenses reduced from three years to one year, "forestry violations" triggering sudden mine closures, and export restrictions managing supply for maximum revenue.

"Canada Nickel's Crawford Project will anchor Canada's global leadership in clean industrial materials. Crawford will set the global standard for the future of responsible mining."

This supply concentration comes as nickel demand accelerates. Battery applications drove 20% annual demand growth from 2020-2021, with total nickel demand reaching 2.8 million tonnes by 2021. Canada Nickel forecasts demand doubling to 5+ million tonnes by 2030, potentially exceeding 6 million tonnes depending on electric vehicle adoption rates.

Crawford addresses this supply-demand imbalance from a politically stable jurisdiction. Canada ranks among the world's lowest-risk mining destinations with established rule of law, developed infrastructure, and skilled mining workforce. Ontario's Timmins district has produced metals for over a century, providing proven geology and community acceptance.

Current Market Dynamics: Ferronickel Weakness, Rising Activity

Recent nickel market data reveals important divergences between product types and regions. Global nickel smelting activity rose 3.2% month-on-month in October 2025, reversing previous declines, though inactive capacity remained elevated at 17.6%. Year-over-year smelting activity increased 3.5%, running 2.9% above the three-year October average.

Regional patterns show stress in traditional producing areas. China's smelter inactivity dropped to 23.6% in October but remains 14.6 percentage points higher than year-ago levels and 10.2 points above its three-year average. Indonesia recorded declining activity with a 2.2% drop, pushing inactive capacity to 13.7%, the second-weakest reading since March 2024.

Product-type divergence presents both risk and opportunity. Ferronickel, used primarily in stainless steel, shows persistent oversupply with 33.8% idle capacity despite 6.9% activity improvement. Nickel pig iron inactive capacity fell to 19.2% following 3.8% activity gains. This suggests potential tightness developing in higher-purity nickel (Class I) used in batteries and advanced applications, while lower-grade products face continued pressure.

Financing Strategy: Building Toward Construction

The C$15 million private placement represents one component of Canada Nickel's comprehensive US$2.5 billion financing strategy for Crawford's US$2.0 billion initial capital expenditure. The company targets a 40% equity and 60% debt structure incorporating multiple funding sources beyond traditional project finance.

Government support forms a significant equity component. Canada Nickel expects US$600 million through federal investment tax credits split between Carbon Capture Utilization and Storage (CCUS) and Clean Technology Manufacturing (CTM) programs. An additional US$100-300 million may come from federal and provincial programs including the Canadian Minerals Infrastructure Fund, Canada Growth Fund, and Ontario Critical Mineral Processing Fund.

The debt package builds on strong institutional support. Export Development Canada issued a letter of interest to serve as mandated lead arranger for a US$500 million debt facility. A leading Canadian financial institution provided a C$500 million support letter. Global export credit agencies and private lenders will fill remaining debt capacity.

Carbon Sequestration: Turning Tailings Into Climate Solutions

Crawford's ultramafic geology provides unique carbon sequestration potential through three parallel pathways. The company's IPT Carbonation process treats tailings directly from mineral processing with CO2 for brief conditioning periods. Latest testwork demonstrates capacity to store 1.5 million tonnes CO2 annually, roughly equivalent to removing 325,000 gasoline vehicles from roads each year.

Partnership with Australia's NetCarb Alliance could multiply this capacity by orders of magnitude. NetCarb's technology has potential to increase Crawford's tailings storage capacity to 10-15 million tonnes annual CO2 sequestration, reaching over 500 million tonnes lifetime capacity. This would transform Crawford from a nickel mine with carbon capture into one of the world's largest permanent carbon storage facilities that happens to produce nickel.

The University of Texas-Austin collaboration supported by US Department of Energy ARPA-E funding provides third validation pathway. This pilot will inject CO2 into ultramafic rock formations for rapid mineralization, with most CO2 converting to solid carbonate minerals within six months. Canada's federal carbon capture tax credits, offering 50% rebates for 2022-2030 and 25% for 2031-2040, could generate approximately US$100 million additional value.

The Investment Thesis for Strategic Nickel Exposure

• Supply Security Premium: Crawford offers politically stable nickel outside Indonesia's 61% market control, valuable for manufacturers diversifying supply chains.
• First-Quartile Cost Structure: US$0.39/lb C1 cash cost positions Crawford in lowest-cost quartile globally, providing profitability across price cycles.
• Scale with Near-Term Delivery: World's second-largest nickel reserve with 2028 first production timing fills supply gap as existing mines deplete.
• Government Support De-Risks Financing: US$600M+ in tax credits and potential government co-investment reduces equity dilution and validates project economics.
• Carbon Sequestration Upside: Three parallel pathways for CO2 storage create option value as carbon prices rise and offset requirements expand.

Canada Nickel's C$15 million oversubscribed financing demonstrates institutional confidence in Crawford's path to construction. The project addresses fundamental market needs: politically stable nickel supply, first-quartile operating costs, and timing that captures the 2028-2030 supply gap as battery demand accelerates and aging sulphide mines face depletion.

Strategic backing from Agnico Eagle, Samsung SDI, Anglo American, and Taykwa Tagamou Nation validates technical, commercial, and social aspects of the project. Government recognition through Major Projects Office referral and expected US$600+ million in tax credits reflects Crawford's strategic importance to North American critical mineral security. The comprehensive US$2.5 billion financing strategy combining tax credits, government programs, export credit agencies, and strategic partnerships reduces equity dilution while advancing toward construction decision.

The global nickel market's structural shift toward Indonesian dominance creates urgency for alternative supply. Crawford's combination of scale, cost position, jurisdictional stability, and carbon sequestration potential positions Canada Nickel to capture premium valuations as manufacturers seek supply chain diversification. For investors seeking exposure to the energy transition's nickel requirement while avoiding Indonesia concentration risk, Crawford represents one of few large-scale development options in stable jurisdictions with near-term production timing.

TL;DR

Canada Nickel raised C$15M to advance Crawford, the world's second-largest nickel reserve, toward construction by late 2026. With backing from major strategic investors and economics showing US$2.8B NPV, the project addresses critical supply gaps as Indonesia consolidates control over 61% of global nickel production.

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