Western World's Largest Nickel Sulfide Project Advances with Strong Government Backing; Canada Nickel Eyes 2025 Construction Decision

Canada Nickel Company is advancing what is set to become the Western world's largest nickel sulfide operation, with recent developments substantially de-risking both funding and permitting pathways for its flagship Crawford project. The company's progress comes at a time when Western governments are increasingly focused on securing critical mineral supply chains, particularly for materials essential to the energy transition and national security.

Project Funding Structure and Progress

The Crawford project requires approximately $2 billion in capital expenditure, necessitating a total funding package of $2.5 billion USD. The company has made significant strides in securing this funding through a combination of government support, strategic partnerships, and tax credits.

CEO Mark Selby outlines the funding progress: "Export Development Canada is there for $500 million and agreed to be a mandated lead arranger on a debt facility, and another institution is there for 500 million Canadian... that's literally 60% of the debt package." The involvement of Export Development Canada (EDC) as lead arranger is particularly significant, given their reputation as a leader in mining finance.

Of the total funding requirement, $1.5 billion is expected to come from debt and $1 billion from equity. The company has qualified for approximately $600 million in Canadian government tax credits related to critical minerals and carbon capture storage which they hope to bridge as equity capital. Samsung has committed $100 million to the equity portion, leaving approximately $300 million to be secured through ongoing discussions with battery supply chain participants, private equity groups, government and other partners.

Development Timeline and Key Milestones

The project is approaching several critical milestones in its development pathway. The company is completing its Environmental Impact Statement filing, expected within days. Following this submission, a federal permitting decision is anticipated by summer or fall 2025. The company is targeting a construction decision for fall 2025, followed by a 30-month construction period to production.

Canada Nickel has positioned itself as a first mover in Canada's updated environmental permitting process. The company is the first mining project to file an impact statement under the 2019 legislation on environmental permitting, demonstrating both the project's advanced status and the relative scarcity of large-scale mining projects advancing in Canada.

Project Economics and Ownership Structure

The Crawford project carries an NPV of $2.5 billion USD. The company expects to retain 60-70% ownership post-funding, representing significant potential value for shareholders. This ownership retention is particularly notable given the scale of the project and the relatively modest remaining equity requirement.

Recent exploration success has enhanced the project's potential beyond its bulk tonnage foundations. High-grade discoveries at Bannockburn, showing 4% nickel over 4 meters and 12 meters of 1.6%, suggest potential for higher-grade zones within the company's land package.

Strategic Positioning in Critical Minerals Space

The project's development coincides with increasing government focus on critical minerals security. Selby highlights this strategic advantage:

"Critical minerals are really a national security issue for both the US and Europe... those of us who are going to be inside the fence are going to benefit from whatever tariffs end up being placed on Chinese production."

This geopolitical backdrop has translated into tangible support mechanisms. Beyond direct funding, the company is benefiting from various government initiatives, including the Canadian minerals infrastructure fund. The company recently received $4 million from this $1.5 billion fund for infrastructure studies, with potential for significant additional infrastructure funding support.

Regional Exploration and Growth Potential

Beyond Crawford, Canada Nickel controls multiple regional targets, with several showing potential to exceed Crawford's scale. The Reid property, currently under exploration, is expected to produce an initial resource before year-end and may prove larger than Crawford.

The company has reported significant exploration results across multiple properties in the region. This regional potential suggests opportunities for either expansion of the primary operation or potential joint ventures on satellite deposits.

Downstream Development and Strategic Appointments

The company is actively developing downstream processing opportunities, recently strengthened by key appointments including Julian Ovens, former Chief of Staff to senior ministers and executive at BHP and Rio Tinto. These downstream initiatives focus on providing low or zero-carbon processing options for the steel and alloy industries, addressing both nickel and chromium markets.

The company recently participated in a North American stainless steel conference, engaging with potential customers interested in chromium, nickel, and iron supply, particularly when coupled with low-carbon processing options.

Market Context and Government Support

The development of Crawford is occurring against a backdrop of increasing government support for critical minerals projects. This support extends beyond traditional mining jurisdictions, with both US and European governments implementing policies to secure supply chains.

Current funding programs through the Department of Defense and Department of Energy remain in place with bipartisan support. Additional mechanisms under discussion include potential fixed-price commodity purchases to ensure project development, highlighting the strategic importance governments place on domestic critical mineral supply.

Upcoming Catalysts and Developments

The company has outlined several near-term catalysts, including:

• Completion of the Environmental Impact Statement filing
• Additional resource updates before year-end
• Further regional exploration results
• Advancement of downstream business initiatives
• Completion of funding package arrangements by end of Q1 2025

Looking Forward

With major milestones approaching and significant funding secured, Canada Nickel appears well-positioned to advance Crawford toward production while maintaining majority ownership for shareholders. The project's scale, combined with strong government support and strategic positioning in the critical minerals space, provides a clear development pathway.

The company's progress in securing funding, advancing permitting, and demonstrating project economics comes at a time when Western governments are increasingly focused on securing critical mineral supply chains. This alignment of project development with strategic national priorities provides additional support for the project's advancement toward construction.

As the company moves toward a construction decision in late 2025, attention will likely focus on finalizing remaining funding arrangements, completing the permitting process, and continuing to demonstrate the project's regional growth potential. The combination of project scale, government support, and strategic positioning suggests continued momentum toward project development.