Canada Nickel Secures Exclusive Mandate for Up to US$600M Investment Tax Credit Loan Facility

Canada Nickel Company Inc. has appointed SB1 Markets AS as exclusive advisor to arrange a debt financing facility of up to US$600 million, structured to monetise investment tax credits expected to be generated by the construction of the Crawford Nickel-Cobalt Sulphide Project. The facility is expected to be arranged by the end of 2026, ahead of a final investment decision (FID) targeted for 2027, and is characterised by the company as central to Crawford's overall capital structure, designed to fund more than half of the equity capital required for construction. SB1 Markets AS is a leading Nordic investment bank with approximately US$70 billion in transactions arranged over the last 12 months, with natural resource project financing a core part of its business.

Company Overview

Canada Nickel Company Inc. (TSXV: CNC | OTCQX: CNIKF) is advancing the next generation of nickel-sulphide projects to supply nickel for the electric vehicle and stainless steel markets. The company is anchored by its 100%-owned flagship Crawford Nickel-Cobalt Sulphide Project, located in the Timmins-Cochrane nickel district of Ontario. Canada Nickel is pursuing the development of processes to enable the production of net-zero carbon nickel, cobalt, and iron products, and has applied in multiple jurisdictions to trademark the terms NetZero Nickel, NetZero Cobalt, and NetZero Iron.

Exclusive Mandate Signals Accelerated Financing Execution

Canada Nickel announced on June 24, 2026, that it has awarded an exclusive mandate to SB1 Markets AS to arrange a debt financing facility of up to US$600 million. The structure is designed to allow the company to monetise investment tax credits expected to be generated during the construction of the Crawford Nickel-Cobalt Sulphide Project.

The appointment of SB1 Markets as the exclusive advisor represents a material step toward advancing Crawford's capital structure to a construction-ready state. Canada Nickel has stated that the financing is expected to be arranged by the end of 2026, positioning the facility in advance of a final investment decision targeted for 2027.

Chief Executive Officer and Director of Canada Nickel Company, Mark Selby, outlined the strategic rationale for the mandate:

"We are very pleased to work with SB1 Markets, a global leader with deep experience and a highly successful track record in providing debt financing for natural resource projects. With a final permitting decision expected shortly, we can now move more aggressively on key components of our project financing as we advance towards a final investment decision. This bridge financing is central to Crawford's overall capital structure; it allows us to deploy Canada's generous investment tax credits available for critical mineral projects in Canada to fund more than half of the equity capital we need to build Crawford."

The framing of the investment tax credits facility as a bridge instrument that carries more than half of the equity requirement is a significant statement on dilution management, establishing a mechanism that reduces the amount of equity the company would otherwise need to raise in capital markets.

SB1 Markets AS: Advisor Profile

SB1 Markets AS is a Nordic investment bank jointly owned by SpareBank 1 and Swedbank. The firm provides investment banking services across debt capital markets (DCM), equity capital markets (ECM), advisory, research, sales, corporate access, and fixed income, currencies, and commodities (FICC). SB1 Markets is headquartered in Norway and Sweden, has approximately 270 professionals, and has arranged transactions totalling approximately US$70 billion over the last 12 months. Financing natural resource companies and projects is described as a core part of the firm's business.

The selection of a Nordic bank with demonstrated volume and specialist exposure to natural resource financing reflects Canada Nickel's stated intent to access a lender base that is familiar with large-scale mining project debt structures.

Investment Tax Credit Monetisation as a Capital Efficiency Mechanism

The proposed facility is structured around the monetisation of Investment Tax Credits expected to be generated by Crawford's construction activity. Canada Nickel has indicated that Canada's critical mineral Investment Tax Credit regime provides a basis for this financing approach, with the company characterising the facility as central to funding construction without proportional equity issuance.

The press release does not disclose the specific Investment Tax Credit rate, the total estimated Investment Tax Credit quantum, or the detailed terms of any proposed facility. Canada Nickel has stated that if the financing is completed, its terms would be included in a subsequent release. Investors are reminded that there is no assurance that the proposed financing will be completed.

Next Steps

Canada Nickel has identified three near-term milestones that frame the path from the current mandate to construction:

Final Federal Permitting Decision: Selby referenced an expected final permitting decision as a prerequisite enabling the company to move more aggressively on project financing. No specific timeline beyond "expected shortly" is provided in the press release.

Financing Arrangement by End of 2026: Canada Nickel is targeting the arrangement of the Investment Tax Credit loan facility by the end of 2026, completing a critical financing building block ahead of the final investment decision.

Final Investment Decision Targeted for 2027: The company has framed the Investment Tax Credit facility arrangement as a precondition for advancing to a final investment decision on Crawford, with that decision targeted for 2027.