Canada Nickel Company (TSXV: CNC) is steadily developing out its flagship Crawford Nickel-Cobalt Sulphide project near Timmins, Ontario. The company this morning announced that it has entered into a non-binding memorandum of understanding with that of Glencore, whom has operations nearby, for a study on the use of the firms concentrator and metallurgical site at its Kidd operations.
Located just 40 kilometres south of the Crawford project, the use of Glencore’s concentrator and metallurgical site would allow Canada Nickel to significantly reduce the initial costs of putting its project into operation. The use of the excess capacity here would enable a faster scale-up of the project as well, in addition to cutting costs.
Furthermore, the company has indicated that it is considering entering production on site and at a smaller scale if the use of Glencore’s facilities prove economical. The company would then continue to develop the project out and continue the permitting process on the larger scale project as well. The arrangement has enough potential that the company has indicated it will be delaying the release of its preliminary economic assessment until the end of March so that it can properly examine the option.
A detailed study of the option is to now take place following the completion of an initial high-level assessment. If the study returns positive results, the company will proceed with good faith negotiations for a binding arrangement.
Canada Nickel Company last traded at $2.29 on the TSX Venture.
Information for this briefing was found via Sedar and Canada Nickel Company. 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.
