Canada Nickel Company (TSXV: CNC) has secured a $20 million investment from Taykwa Tagamou Nation, a First Nation band based in Northern Ontario. The investment will come in the form of a convertible note.
“This transaction demonstrates what is possible when industry and First Nations work together towards a common goal. [..] We are excited to welcome TTN as true partners in our journey to deliver critical minerals for the clean energy transition. As we advance our flagship Crawford Project towards a construction decision, we also plan to unlock the potential of the Timmins Nickel District together by completing eight resources by mid-2025, building a future that benefits both the environment and future generations,” commented Mark Selby, CEO of Canada Nickel.
The arrangement will see Taykwa acquire a $20 million secured convertible note in Canada Nickel. The note is to have a five year term and carry a 4.75% coupon per annum, paid quarterly. The note contains the right to convert into 16.67 million common shares of Canada Nickel, at a conversion price of $1.20 per share, which represents a 28% premium to Friday’s close.
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The position represents an 8.4% interest in the company, with the investment earning Taykwa the right to nominate one director to Canada Nickel’s board of directors. The Nation will maintain that right on a post-conversion basis, provided they maintain at least a 5% ownership interest.
Completion of the transaction is slated to occur in January 2025, subject to regulatory and certain third party approvals. A $1 million deposit was provided upon signing.
Canada Nickel last traded at $0.94 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
