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Canada Nickel raises $44 million to advance Timmins nickel deposit

Anglo American offers tech support for improved metal recoveries
(Canada Nickel Company photo)

Canada Nickel Company, the Timmins open-pit mine developer, has raised $44 million, most of its earmarked for ongoing exploration in northeastern Ontario.

The Toronto company announced March 2 that it has closed a previously announced deal with Anglo American in a $26 million share deal but also raised $18.2 million in financing from the sale of common and flow-through shares.

In the news release, Canada Nickel said the net proceeds from the raise of the Anglo American investment, the common share offering is earmarked for exploration at Crawford and its other northeastern Ontario properties, repayment of a loan with Auramet and for general working purposes.

Anglo American, the British-listed multinational miner has a 9.9 per cent ownership stake in Canada Nickel.

Canada Nickel’s flagship project is its Crawford nickel and cobalt sulphide project, 40 kilometres north of the city. The proposed pit  operation is consider a huge tonnage, low grade nickel deposit with a measured and indicated resource of 1.43 billion tonnes of nickel at 0.24 per cent.

The deal with Anglo American also involves an off-take agreement allowing them to purchase up to 10 per cent of the nickel concentrate, iron and chromium mined from Crawford. Anglo is also lending some technical expertise to assist Canada Nickel with improving its mineral recoveries during processing and help reduce its carbon footprint.