Canada Nickel Announces Receipt of Support Letter for up to $500 million from Leading Financial Institution
Rhea-AI Summary
Canada Nickel Company (TSXV: CNC) (OTCQX: CNIKF) has received a support letter from a leading financial institution expressing interest in providing up to C$500 million (US$370 million) in long-term debt financing for the Crawford Nickel Sulphide Project in Timmins, Ontario. This is in addition to the US$500 million letter of interest from Export Development Canada announced last week. Combined, these letters amount to approximately US$870 million of potential senior debt.
The company also expects to qualify for refundable critical minerals and carbon capture and storage tax credits exceeding US$600 million for Crawford's initial development phase. With these financial developments, Canada Nickel is well-positioned to secure the remaining project funding needed to begin construction when permits are received, expected by mid-2025.
Positive
- Receipt of support letter for up to C$500 million (US$370 million) in long-term debt financing
- Combined potential senior debt of approximately US$870 million from two financial institutions
- Expected qualification for over US$600 million in refundable tax credits
- Progress towards securing project financing for Crawford Nickel Sulphide Project
Negative
- Final terms and conditions of financing still subject to further due diligence
- Project construction dependent on receiving permits by mid-2025
News Market Reaction
On the day this news was published, CNIKF gained 9.30%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Additional milestone in securing project financing for the Crawford Nickel Sulphide Project
Mark Selby, CEO of Canada Nickel, said, "We are very pleased with this additional indication of interest as it is another substantial step towards advancing our financing package for Crawford. With last week's previously announced
About Canada Nickel Company
Canada Nickel Company Inc. is advancing the next generation of nickel-sulphide projects to deliver nickel required to feed the high growth electric vehicle and stainless steel markets. Canada Nickel Company has applied in multiple jurisdictions to trademark the terms NetZero Nickel™, NetZero Cobalt™, NetZero Iron™ and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel provides investors with leverage to nickel in low political risk jurisdictions. Canada Nickel is currently anchored by its
For further information, please contact:
Mark Selby
CEO
Phone: 647-256-1954
Email: info@canadanickel.com
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward looking information includes, but is not limited to, the ability to secure project financing, the timing and receipt of construction permits, the ability to commence construction at Crawford, and timing and availability of funding from Export Development Canada, other project funding and refundable tax credits. Forward-looking information is necessarily based upon several assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: the terms on which the Company is able to secure debt financing (if at all), future prices and the supply of metals, the future demand for metals, the results of drilling, inability to raise the money necessary to incur the expenditures required to retain and advance the property, environmental liabilities (known and unknown), general business, economic, competitive, political and social uncertainties, results of exploration programs, risks of the mining industry, delays in obtaining governmental approvals, failure to obtain regulatory or shareholder approvals. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Canada Nickel disclaims any intention or obligation to update or revise any forward-looking information, whether because of new information. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
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SOURCE Canada Nickel Company Inc.
FAQ
What is the total potential senior debt Canada Nickel (CNIKF) has secured for the Crawford project as of September 12, 2024?
When does Canada Nickel (CNIKF) expect to begin construction on the Crawford Nickel Sulphide Project?
How much in tax credits does Canada Nickel (CNIKF) expect to qualify for in the initial phase of Crawford's development?
Who are Canada Nickel's (CNIKF) financial advisors for securing project funding?
