Canada Nickel Timeline 2023 - North American Production for EV Demand

About Canada Nickel

Canada Nickel Company Inc. is a Canadian nickel exploration and development company focused on advancing the next generation of nickel-sulphide projects. Its flagship asset is its 100% owned Crawford Nickel-Cobalt Sulphide Project in Timmins, Ontario which is one of the world's largest nickel sulfide deposits.

Major investments from companies including battery maker Samsung, diversified miner Anglo American, and Canadian gold miner Agnico Eagle have provided strong 3rd-party validation of Canada Nickel’s project potential. Led by President & CEO Mark Shelby, Canada Nickel pursues nickel sulphide projects to supply the electric vehicle and stainless steel markets with leverage to nickel in low political risk jurisdictions.

What Happened in 2023?

December

Finalizing an Off-Take Agreement on the Crawford Project

Canada Nickel provided updates on the company’s Crawford nickel project, finalizing an off-take agreement by late 2023 that would represent a major endorsement from the industry. The company recently completed a feasibility study on Crawford, slated to become one of the world’s largest nickel sulphide operations with outlined robust economics of $2.5 billion NPV in the study.

Advancing Crawford towards production while strategically leveraging other assets provides Canada Nickel avenues for significant value creation as the feasibility study validated Crawford's large scale and supports ongoing partnership talks.

November

CNC Files BFS on Crawford Nickel Sulphide Project 

The Bankable Feasibility Study (BFS), independently prepared by Ausenco Engineering Canada Inc. by NI 43-101, was filed by Canada Nickel for its wholly-owned Crawford Nickel Sulphide Project. The BFS highlighted robust economics with an after-tax NPV8% of $2.5 billion and 17.1% IRR. It outlined proven and probable reserves of 3.8 million tonnes contained nickel. 

Significant improvements in recoveries were also reported in the study compared to the PEA, including a 10% improvement in nickel recovery life-of-mine. The BFS estimated the project will have a minimal carbon footprint of 4.8 tonnes CO₂ per tonne of nickel in concentrate. Additionally, implementation of Canada Nickel’s In-Process Tailings Carbonation process is expected to allow the capture and storage of 1.5 million tonnes CO₂ annually.

October

Crawford 2023 Highlights

Canada Nickel announced positive results from the Bankable Feasibility Study (BFS) for its wholly-owned Crawford Nickel Sulphide Project.‍

Key highlights:

• Crawford is the world’s 2nd largest nickel reserve and 2nd largest resource with an initial mineral reserve of 1.7 billion tonnes of ore grading 0.22% nickel
• Production of 1.6 million tonnes of nickel, 24 kt cobalt, 490 koz palladium & platinum, 58 million tonnes of iron and 2.8 million tonnes of chromium over 41-year project life
• $2.5 billion after-tax NPV8% and IRR of 17.1%
• Annual EBITDA of $811 million, free cash flow (FCF) of $546 million, and 48ktpa of nickel

Crawford will mine two separate open pits containing approximately equal tonnages of ore. Mine production rates have been decoupled from the mill, resulting in a 30-year mine life compared to 41-years for the overall project. 

‍September

2022 Environmental Social and Governance Report

Canada Nickel published its initial Environmental, Social, and Governance (ESG) report which contains key disclosures reported by the Global Reporting Initiative: Core option, and the company's contributions to the United Nations Sustainable Development Goals and the 10 Principles of the United Nations Global Compact. Topics covered in the report were determined through a materiality assessment where the company asked internal and external sources, including indigenous peoples, to evaluate the relevance of potential ESG topics.

US$12 Million Loan Facility Secured

Canada Nickel closed a US$12 million secured loan facility with Auramet International. The proceeds will be used towards working capital to continue advancing permitting and detailed engineering activities on the company's Crawford Nickel-Cobalt Sulphide Project.  Auramet also received 550,000 one-year warrants with a C$1.24 per share strike price. 

Canada Nickel noted it continues to advance Crawford, its flagship 100% owned nickel-cobalt project located in Timmins, Ontario, as it works towards a goal of becoming a nickel, cobalt and iron producer positioned to feed the high growth electric vehicle and stainless steel markets.

Completion of Carbon Storage Pilot Plant

Canada Nickel has successfully completed its carbon storage pilot plant, demonstrating the value of its novel carbon storage process called In-Process Tailings (IPT) Carbonation. The company processed over 7 tonnes of tailings and confirmed the engineering design parameters for incorporating IPT Carbonation into its upcoming Integrated Feasibility Study. 

Additionally, a consulting study confirmed Canada Nickel’s Crawford project could reasonably expect over C$25 per tonne of CO₂ in storage fees and confirmed potential demand for over 20 million tonnes of annual CO₂ storage capacity in Ontario. This demand exceeds Crawford’s 1 million tonne capacity but supports Canada Nickel’s view to anchor a Zero Carbon Industrial Cluster in the Timmins-Cochrane region.

August

‍New Discovery at Mann Northwest Property

A new discovery at Mann Northwest was reported by Canada NIckel, located just 22 kilometers from its flagship Crawford nickel project. An initial phase of 8 drill holes all intersected zones of nickel-bearing rock averaging 200-400 meters thick. Highlights included 210 meters at 0.26% nickel and 291 meters at 0.23% nickel at Mann Northwest.  The company has already identified 11 properties with larger geophysical targets than Crawford, demonstrating significant upside potential and additional drilling at Mann Northwest will aim to confirm the continuity and size of mineralization. 

July

Promising Drill Results at Midlothian Property 

Four drill holes from Canada Nickel’s drilling program at the Midlothian nickel property encountered long intervals of nickel mineralization starting near the surface, confirming Midlothian as a significant new nickel discovery. All holes intersected nickel grades of 0.26-0.29% over widths of 300-400 metres. The mineralization remains open at depth across the 1.7 square kilometer target area, which is larger than Canada Nickel's flagship Crawford deposit. The drill results also revealed higher-than-expected amounts of brucite, a key mineral for carbon sequestration. With nickel demand forecast to surge from the electric vehicle and stainless steel markets, the company stated the Midlothian discovery represents an exciting development that will be crucial as nickel shortages loom in coming years.

June

High-grade, Near-surface Mineralization at Texmont Project

Assay results from the final 11 drill holes at Texmont Nickel Sulphide Project confirmed continued high-grade, near-surface mineralization. Seven of 11 holes intersected nickel grades above 1% and all 11 holes intersected grades over 0.5%. Highlights included 3.0 meters of 2.31% nickel within 15 meters of 0.83% nickel in hole TXT23-39 starting at just 12 meters depth. The results further confirm the Texmont deposit displays zoning, with a high-grade core above 1% nickel encompassed by thicker intervals of moderate-high grade mineralization between 0.6-1.0% nickel surrounded by lower-grade zones of 0.25% nickel or better. 

Carbon Storage Breakthrough at Crawford Project‍

Carbon capture testing at Canada Nickel’s Crawford Nickel-Cobalt Sulphide Project confirmed the project’s potential to store over 1 million tonnes of carbon dioxide (CO₂) annually using an innovative in-process tailings carbonation method. This positions Crawford to produce nickel and cobalt with a net-zero carbon footprint and the captured CO₂ may make the project eligible for significant carbon tax credits, thus improving project economics. Canada Nickel expects to release a full integrated feasibility study for Crawford in late-2023, with permitting on track for a potential construction decision by mid-2025.

Texmont Metallurgical Results Project Released‍

Initial metallurgical test results on samples from Texmont Nickel Sulphide Project were announced where excellent nickel and cobalt recoveries of 79-84% and 77-83% respectively were yielded, and produced high-grade concentrates ranging from 18-28% nickel with up to 0.7% cobalt. Additionally, Canada Nickel acquired 9,520 hectares of regional mining claims with the potential to host additional Texmont-style mineralization. The company is advancing Texmont to evaluate near-term production potential via an open pit on the project’s moderate-high grade material. 

Canada Nickel remains on track to deliver an initial resource estimate and Preliminary Economic Assessment for Texmont by the end of 2023, while continuing to advance its 100% owned Crawford Nickel-Cobalt Sulphide Project.

May

Results and Updates from Multiple Nickel Exploration Properties

Canada Nickel reported assay results from several of its regional nickel exploration properties:

• Initial drilling at Mann Northwest option property intersected long intervals of mineralized peridotite and dunite across a 500-meter-wide zone along 800 meters strike length. Additional drilling is underway. 
• At the Midlothian option property, hole MID23-01 intersected 343 meters at 0.28% nickel starting just 2 meters from the surface. Assays are pending from 3 more holes. 
• Drilling confirmed high-grade zones at Sothman West including 1.28% nickel over 5.3 meters within 192 meters at 0.31% nickel in hole SOT22-09. Drilling also delineated wide, lower-grade mineralized zones at Sothman East up to 319 meters at 0.29% nickel.

The results continue to demonstrate the success of the company’s regional exploration program on district-scale land holdings around its Crawford nickel project. With nickel demand forecast to surge, recent discoveries at properties like Mann Northwest, Sothman, and Midlothian will be crucial to supply the nickel needed by the electric vehicle and stainless steel markets in the years ahead.

April

Poised for Growth in the Electric Vehicle Market

Canada Nickel's flagship Crawford Nickel-Cobalt Project, discovered in 2018 north of Timmins, Ontario, is one of the largest nickel sulphide discoveries in the last decade with over 1.3 billion tonnes of resources identified. Crawford is expected to produce an average of 37,000 tonnes of nickel annually over a 27-year mine life. Beyond Crawford, Canada Nickel has aggressively expanded its land package allowing for exploration upside, with recent discoveries at the Reid and Deloro properties.

Well-funded with over C$60 million cash on hand, Canada Nickel is well-positioned to capitalize on opportunities from EV demand growth, exploration potential, ESG focus, acquisitions and innovation.‍

Commencement of the Impact Statement Phase for Flagship Project‍

Impact Statement Phase has commenced for Canada Nickel’s Crawford Nickel Project which marks an important step in the federal permitting process for the project. The Impact Statement Phase is the second phase which culminates with the company submitting a detailed Impact Statement document. This identifies and assesses the potential impacts of the project and measures proposed to mitigate those effects. Canada Nickel expressed appreciation to partners, stakeholders and Indigenous communities for their continued engagement in the Impact Assessment process. ‍

New Project Debt Advisor, Changes in Board‍

Canada Nickel Company announced the appointment of Cutfield Freeman & Co. as project debt advisor for its Crawford Nickel Sulphide Project.  Cutfield Freeman, a leading global mining advisory firm, will work alongside previously appointed equity advisors Deutsche Bank and Scotiabank to assist Canada Nickel in structuring an overall financing package as it advances Crawford toward production

Additionally, the company announced that current board member David Smith will take over the Chairman role and the retirement of Russell Starr from the Board to pursue other commitments but remains supportive of Canada Nickel's success.‍

Discovery with Even Larger Potential than Flagship Crawford Property

Preliminary mineralogy samples from the first two holes at Canada Nickel’s Midlothian Property showed mineralization dominated by awaruite, a recoverable nickel-iron alloy that contains more than triple the brucite content compared to the company’s flagship Crawford deposit. CEO Mark Selby noted Midlothian is one of ten company properties with a larger geophysical footprint than Crawford, demonstrating the district's potential. 

Assays are still pending from the Midlothian drilling while additional holes are underway. The latest results provide further demonstration of Canada Nickel unlocking the potential of the Timmins Nickel District with each exploration success increasing the probability of further discoveries across the company’s regional land package. 

Mineralization Expansion at Texmont Property

Assay results from 16 additional drill holes indicated an expansion of the high-grade, near-surface mineralization at Canada Nickel's Texmont Nickel Sulphide Project. 

• Nine drill holes intersected higher-grade zones above 1% nickel, including 3 meters of 1.47% nickel within 13.5 meters of 0.82% nickel in hole TEX23-26. 
• Hole TEX23-19 hit 7 meters of 1.03% nickel within 40 meters of 0.69% nickel. 
• High grade mineralization with hole TXT23-32 hitting 10.5 meters of 0.95% nickel.

The results continue to confirm Canada Nickel’s view of Texmont displaying zoning of mineralization. Additional assays are pending from 11 more drill holes from the 9,696 meter program at Texmont. The company remains on track to deliver an initial resource estimate and Preliminary Economic Assessment on Texmont in 2023.

March‍

Anglo American Investment, Public Offering for Total Proceeds of C$44 Million‍

Canada Nickel Company Inc. announced the closing of investments from Anglo American for aggregate gross proceeds of C$26,154,294.71. Under the investments, Anglo American subscribed for 12,569,235 common shares at C$1.95 per share and 952,623 common shares at C$1.77 per share. Upon completion, Anglo American held 9.9% of Canada Nickel's issued and outstanding common shares.

Canada Nickel also concurrently closed its "bought deal" prospectus offering for aggregate gross proceeds of C$18,208,763. Under the offering, the company sold 7,462,500 common shares at C$1.77 per share and 1,748,300 "flow-through shares" at C$2.86 per share.‍

Drill Results Confirms High Grades at Texmont Property‍

Assay results from the first 12 holes contained nickel intervals, with highlights of 5.2 metres of 2.60% nickel within 21.0 metres of 1.22% nickel in hole 22-03, and 4.0 metres of 2.43% nickel within 12.0 metres of 1.45% nickel in hole 22-06, confirmed high grade, near-surface nickel mineralization over 400 metres of strike length.

Canada Nickel has drilled 39 holes totalling 9,670 metres, completing its initial phase to support a mineral resource estimate expected later this year. The drilling confirms the potential for near-term, smaller-scale, open pit production which is highly complementary to the company's large-scale Crawford nickel project.‍

Additional Shares Closed from Over-Allotment Option‍

Further to the closing of the company's C$44.0 million public offering and concurrent private placement, the syndicate of underwriters led by Scotiabank had partially exercised their over-allotment option to purchase an additional 950,000 common shares of Canada Nickel at a price of C$1.77 per share for aggregate gross proceeds of approximately C$1.7 million. The net proceeds raised under the offering, including from the over-allotment option, were to be used primarily for the exploration and advancement of Canada Nickel's Crawford Nickel Project, repayment of the Auramet loan facility, and general working capital purposes. ‍

63% Nickel Recovery, and Texmont Acquisition‍

Robust nickel recoveries from the first metallurgical test on a sample from its Reid Nickel Property located 16 kilometers from its flagship Crawford project achieved 63% overall nickel recovery. Half of the recovered nickel reported a 60% nickel concentrate, the highest grade sulphide concentrate attained in over 120 tests with this flowsheet. Canada Nickel noted that while early, the ability to leverage the metallurgical process developed for Crawford has potential across the company’s regional exploration targets that comprise its Timmins Nickel District holdings.

February‍

$24 million Investment from Anglo American‍

Canada Nickel entered into a subscription agreement with Anglo American for an approximately $24 million investment in Canada Nickel at a price of $1.95 per common share. Upon completion of the private placement, Anglo American would own 9.9% of Canada Nickel's issued and outstanding common shares on a non-diluted basis. Canada Nickel also agreed to enter into a binding Off-take Term Sheet with Anglo American, granting them exclusive rights to purchase up to 10% of recoveries from the Crawford Nickel Project.‍

January‍

C$20 Million Bought Deal Public Offering and Private Placement

Canada Nickel agreed with Scotiabank to act as lead underwriter for a bought deal public offering of 7,462,500 common shares at C$1.77 per share and 1,748,300 flow-through shares at C$2.86 per share, for aggregate gross proceeds of approximately C$18.2 million.

The underwriters were granted a 30-day over-allotment option to purchase additional offered securities, up to 15% of the gross proceeds from the public offering. The flow-through share proceeds would be used to incur eligible Canadian exploration expenses. The net proceeds would be used to advance the Crawford nickel-cobalt project, repay a loan facility, and for general working capital.