Agnico Eagle invests $23M for 12% of Canada Nickel

Agnico Eagle Mines (TSX: AEM; NYSE: AEM) made a $23.1-million investment in the recent flow-through offering from Canada Nickel Company (TSXV: CNC; OTCQX: CNIKF). Agnico acquired 19.6 million units at a price of $1.18 per unit for a total consideration of slightly more than $23.1 million. This gives Agnico a non-diluted equity interest in Canada Nickel of 12% or 15.6% on a partially diluted basis.

Canada Nickel raised a total of $34.7 million.

Each unit consists of one flow-through share and 0.35 of one flow-through share purchase warrant. Each warrant entitles the holder to purchase an additional common share at a price of $1.77 any time prior to Dec. 29, 2026, or the expiry date.

Agnico Eagle said it made the purchase for investment purposes.

Canada Nickel’s flagship project is the Crawford nickel sulphide deposit, for which it released a feasibility study in October 2023. Crawford contains the world’s second largest nickel resources which total 2.46 billion tonnes at 0.24% nickel, containing 13.30 billion lb. of nickel. Over an initial life of 41 years, the project will produce 3.54 billion lb. of nickel, 52.9 million lb. of cobalt, 490,000 oz. of palladium and platinum, 58 million tonnes of iron, and 6.2 million lb. of chromium.

Uniquely, Canada Nickel is going to use its in-process tailings (IPT) method of carbonization will be used to create an eco-friendly project. IPT involves injecting a concentrated source of CO₂ into tailings in the mill. The carbon is geologically sequestered in the tails while they are in the processing circuit, rather than after. (See CMJ news for Jan. 4, 2023.)

Canada Nickel CEO Mark Selby welcomed the investment by Agnico. “The proceeds from this offering will help us continue to unlock the potential of our Timmins nickel district, which we believe has the potential to be one of the world's largest nickel sulphide district.  This potential, combined with our novel IPT carbonation process to capture and store CO₂, provides a foundation for a zero-carbon industrial cluster in northern Ontario.”

Learn more about both companies at www.AgnicoEagle.com and www.CanadaNickel.com.