Crawford Project Advances as Final Federal Approvals Expected Year-End

• Canada Nickel has completed Front-End Engineering Design (FEED) for the Crawford Nickel Project, advancing engineering to approximately 30% completion with a 5% increase in capital costs but improved NPV and IRR.
• The company modified their mine plan to prioritize the East Zone over the Main Zone, reducing stripping requirements and truck fleet needs, offsetting some capital cost increases.
• Canada Nickel is working on securing $500 million USD from Export Development Canada and $500 million CAD from another financial institution, with Middle Eastern sovereign wealth funds showing significant interest.
• The company plans to publish resources for six additional properties by mid-2025, bringing their total to nine resources in the Timmins district, potentially making it the world's largest nickel sulfide district.
• Canada Nickel announced partnership agreements with First Nations communities for construction projects, demonstrating local support, and is working toward receiving final permitting approvals by year-end 2025.

In this PDAC 2025 interview, Mark Selby, CEO of Canada Nickel Company, outlined significant progress on the Crawford Nickel Project and provided insights into the company's strategic initiatives. The discussion highlighted advancements in engineering, financing efforts, and the potential scale of the Timmins Nickel District, positioning the company at a pivotal moment as it moves toward a construction decision by year-end 2025.

Front-End Engineering Design Completion

Canada Nickel has successfully completed Front-End Engineering Design (FEED) for the Crawford Nickel Project, a milestone that advances engineering from the 10% level typical of feasibility studies to approximately 30% completion. This development brings increased certainty to the project economics and enables the company to place orders for long-lead equipment items, critical in the current market environment where equipment delivery timeframes can be extended.

The FEED results demonstrated improvements in Net Present Value (NPV) and Internal Rate of Return (IRR) for the project. While capital costs increased by 5%, this was considered modest given the inflation experienced since December 2022, when the feasibility study cost basis was established. Selby noted the company's efficient approach, stating, 

"We've gone from fifth drill hole to feasibility study in just over four years. Today we're just over five years. A lot of projects would have taken seven to 10 years at least to get to the same point that we are."

Strategic Mine Plan Optimization

A key development revealed in the interview was the company's decision to modify its mine plan, prioritizing the East Zone over the Main Zone. This strategic shift reduces the amount of stripping required and subsequently decreases the number of trucks needed for operations.

"We switched the mine plan to go with the East Zone first versus the Main Zone, and that reduced the amount of stripping, which reduced the amount of trucks. So we came up with some pretty clever ways to offset a bunch of those capital costs.”

This optimization exemplifies the flexibility maintained in the project planning and demonstrates the company's ability to adapt to changing economic conditions while enhancing project economics. The East Zone was identified as a higher-value ore body during continuing exploration and assessment work, making it logical to prioritize in the production sequence.

Financing Progress & Strategic Partnerships

Canada Nickel has made substantial progress on the financing front, securing letters of intent for $500 million USD from Export Development Canada and $500 million CAD from a financial institution. The next stage involves an independent engineering review to validate the company's work, a process that should be facilitated by the additional engineering completed during the FEED phase.

Notably, the company is experiencing significant interest from Middle Eastern SWF's looking to diversify their economies beyond oil. These entities, according to Selby, are attracted to large-scale critical mineral projects like Crawford, which is positioned to become "the Western world's largest nickel sulfide operation." The discussion revealed that Canada Nickel is currently engaged in as many or more conversations with Middle Eastern entities as with Korean ones.

"Each of the Emirates have made decisions that we need to start transitioning our economies away from oil. They've got huge Sovereign Wealth Funds... and they are looking for ways to reposition their economy and so projects like ours... are kind of the chunky businesses that they want to get involved in."

Interview with Chief Executive Officer, Mark Selby

Unlocking the Timmins Nickel District

Beyond Crawford, Canada Nickel is focused on establishing the Timmins area as a premier nickel district. The company plans to publish resources for six additional properties by mid-2025, bringing their total to nine resources in the district. Selby claims that the total nickel resource is expected to exceed "the total endowment at Sudbury, which was the world's largest nickel sulfide district up to this point."

This district-scale potential represents a significant value proposition, especially for long-term strategic investors like those from the Middle East who "are willing to invest and play for the long term" rather than seeking shorter investment horizons typical of North American private equity.

Community Partnerships & Social License

Selby highlighted Canada Nickel's progress in securing social license through agreements with local First Nations communities. The company announced substantial construction projects that will be delivered by these communities through a community-driven organisation called Wabun Tribal Council..

This partnership approach, initiated in advance of completing Impact Benefit Agreements, demonstrates community support for the project and strengthens the company's position as it advances through the permitting process. Selby emphasized the significance of these communities "putting their money where their mouth is" as an endorsement of the project.

Permitting & Timeline to Construction

Canada Nickel remains on track with its permitting timeline, with the company now in the final approval stage with the federal government. Selby confirmed they expect to receive these approvals by year-end, with provincial permits to follow in sequence. This timeline aligns with the company's goal of reaching a construction decision before the end of 2025.

The company is also exploring non-equity financing options, including royalties, to secure the remaining capital needed without significant dilution at the equity level. Announcements on this front are expected in the coming months.

The Investment Thesis for Canada Nickel

• Development Stage Value Creation: Canada Nickel is approaching a construction decision in 2025 with completed FEED, potentially unlocking significant value as the project de-risks.
• Nickel Market Exposure: Provides investors exposure to a critical mineral essential for EV batteries and stainless steel with favorable long-term demand fundamentals.
• Scale Advantage: Crawford project is positioned to become the Western world's largest nickel sulfide operation, with district potential exceeding the historic Sudbury Basin.
• Low-Carbon Advantage: Project designed to produce low-carbon nickel, attracting premium pricing in markets like Europe and positioning favorably under carbon border adjustment mechanisms.
• Optionality: Product strategy maintains flexibility for both EV battery and stainless steel markets, providing resilience against market shifts.
• Strategic Interest: Demonstrated interest from Export Development Canada, financial institutions, and Middle Eastern sovereign wealth funds validates project potential.
• Efficient Development Timeline: Accelerated development from discovery to FEED in approximately five years versus industry average of 7-10 years.
• Community Support: Partnerships with First Nations communities provide social license advantages and reduce project execution risks.
• Non-Dilutive Financing Options: Company exploring royalty and other non-equity financing mechanisms to minimize shareholder dilution.
• District-Scale Upside: Nine resource areas by mid-2025 provide significant exploration upside beyond the flagship Crawford project.

Macro Thematic Analysis

The global nickel market is experiencing a profound transformation driven by geopolitical realignments, energy transition demands, and shifting trade patterns. Canada Nickel's Crawford project emerges at a critical juncture when Western economies are actively seeking to reduce dependence on Chinese-dominated supply chains for critical minerals.

Indonesia's dominant position in global nickel production has created market volatility and supply concerns. While Indonesian production has expanded dramatically, much of this expansion has occurred through Chinese investments and partnerships, effectively extending China's influence over nickel supply chains. This dynamic has heightened Western concerns about supply security, particularly as EV production accelerates in North America and Europe.

As Mark Selby noted in the interview, Middle Eastern investment groups recognize this strategic opening: 

"If they can help enable production of critical minerals in the west and have Saudi and the Emirates be part of that transition to help wean the West off of Chinese supplied critical minerals, they're very glad and very excited by the opportunity to do so."

The election of Donald Trump in the United States has further catalyzed interest in Western-based critical mineral projects. With expectations of stronger trade barriers and potential tariffs on Chinese imports, projects like Crawford that can supply North American and European markets directly become strategically valuable.

The bifurcation of global supply chains is also creating opportunities for premium pricing of low-carbon materials in regulated markets. Europe's Carbon Border Adjustment Mechanism and similar policies incentivize the development of cleaner production methods, aligning with Canada Nickel's carbon capture capabilities.

As Selby summarized during the interview: 

"Critical minerals... the whole China versus the West conflict is not going to get resolved in the next week or so." 

This ongoing tension creates sustained strategic value for domestic supply alternatives like Canada Nickel's Crawford project.

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