Canada Nickel Receives $500M Loan Interest From Government Agency For Ontario Project

Canada Nickel Company CNIKF has received a Letter of Interest (LOI) from Export Development Canada (EDC) for a potential $500 million loan to support the development of its Crawford nickel project in Timmins, Ontario.

"We are very pleased with the LOI as it marks an important milestone towards securing a full financing package for Crawford. We look forward to working closely with EDC to complete the due diligence and negotiation process to secure this funding," said Canada Nickel CEO Mark Selby.

The LOI demonstrates the Canadian federal government’s commitment to supporting critical mineral projects, especially those vital to the growing electric vehicle (EV) market. This support is part of the federal government’s broader commitment to critical mineral projects, which are increasingly becoming a matter of national security.

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Selby also noted that the company continues to work with financial advisors, including Deutsche Bank, Scotiabank, and Cutfield Freeman, to secure the remaining funds needed for construction, which is expected to begin by mid-2025, pending the required permits.

The Crawford project could be a serious producer on the global nickel market. Analysis estimates it could supply 48,000 tons of nickel annually, alongside valuable byproducts such as cobalt, palladium, and iron.

With a mine life of 41 years, Crawford will significantly bolster the country’s nickel output. In 2023, Canada produced 132.4 thousand metric tons of nickel, which lags behind Indonesia, the world's largest producer, at 1.7 million metric tons. Projects like Crawford would help bridge this gap and contribute to North America's EV supply chain.

Nickel's primary use has been in the production of stainless steel. However, it is an essential component of electric vehicle batteries, with each battery containing around 29 kilograms of the metal.

In a recent interview for Benzinga, Alaska Energy Metals CEO Gregory Beischer pointed out that the demand for nickel could rise 23-fold by 2035, driven by the rapid adoption of electric vehicles. Despite the metal's recent underperformance, a strong tailwind in demand persists for the long term.

Thus, the Crawford project is important for the company and Canada's ambition to play a significant role in the global clean energy transition.

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