Agnico Eagle Takes 12% Stake In Canada Nickel For $23.1 Million

Canada Nickel Company (TSXV: CNC) evidently is raising funds via a flow through financing. In a rare positive end-of-year news release, it was disclosed that Agnico Eagle Mines (TSX: AEM) has acquired a large stake in the nickel explorer.

Rather than purchase units direct from the company, Agnico acquired 19.6 million units of Canada Nickel from several participants that acquired units under a flow through financing conducted by Canada Nickel. The units were purchased at $1.18 a piece, and contain one common share and 0.35 of a purchase warrant. Warrants contain an exercise price of $1.77 per share, and expire December 29, 2026.

Reference to an ongoing flow through financing currently being conducted by Canada Nickel could not be found, making it unclear when specifically the units were originally sold.

Agnico indicated that the investment represents “an early stage investment” into the critical minerals sector, after spending two years evaluating the sector with a focus on Canadian opportunities specifically. The investment into Canada Nickel is said to “represent an opportunity to establish a presence in an emerging nickel belt and monitor both the project’s progress and emerging technologies relevant to its development.”

The overall investment amounts to a 12% stake in Canada Nickel on a non-diluted basis.

Post-investment, Agnico has obtained the right to participate in equity financings, along with top-up rights and the right to appoint one person to the board of Canada Nickel. Agnico however stated it has no intention to exercise its board rights.

The investment follows Canada Nickel in October releasing a much awaited feasibility study, which outlined an after-tax net present discount (8%) of $2.5 billion for the Crawford project. The project has proven and probable reserves of 3.8 million tonnes of contained nickel at 0.22%. Measured and indicated resources sit at 6.0 million tonnes, while inferred mineral resources amount to 3.7 million tonnes of contained nickel.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Canada Nickel Assays 0.32% Nickel Over 10.1 Metres At Crawford East Zone

Canada Nickel Company (TSXV: CNC) announced this morning assays from the infill drilling program at...

Tuesday, October 26, 2021, 09:44:00 AM

Spruce Ridge Announces Dividend Of Canada Nickel Company Shares

Spruce Ridge Resources (TSXV: SHL) this week announced that it will be conducting a one-time...

Thursday, June 25, 2020, 12:25:51 PM

Canada Nickel Sees Nickel Recoveries As High As 84% At Texmont

Canada Nickel (TSXV: CNC) continues to progress on the development of its Texmont Nickel Sulphide...

Thursday, June 22, 2023, 08:56:47 AM

Agnico Eagle Acquires O3 Mining

As the gold market continues to heat up, we’ve got more consolidation on the table...

Sunday, December 22, 2024, 01:39:00 PM

The Junior Mining Market Is Back

For junior mining investors, 2024 has been a mixed bag of patience and promise. While...

Saturday, November 9, 2024, 05:01:00 PM