Canada Nickel Sees Anglo American Take 9.9% Stake As Part Of Offtake Deal

Canada Nickel (TSXV: CNC) has a new major shareholder as of this morning. Anglo American will be taking a 9.9% interesting in the nickel explorer.

The arrangement will see Anglo American invest a total of $24.0 million to purchase roughly 12.3 million shares at a price of $1.95 per share. The price is said to reflect a 10% premium to the 30-day volume weighted average price of the equity, however it is a discount to yesterday’s closing price of $2.00 per share.

The purchase will result in the company owning a 9.9% stake in the firm, which is just under continuous disclosure requirements.

As part of the arrangement, Canada Nickel at the time of closing the investment is to enter an offtake term sheet, which will see Anglo have the exclusive right to 10% of recoveries of nickel concentrates, which is to include iron and chromium contained within. Interestingly, Anglo will also have rights to 10% of the corresponding carbon credits, if any, associated with the mine.

READ: Canada Nickel Confirms Reid As A Major Discovery, Hits 0.25% Nickel Over 471 Metres

The arrangement will also see the firm enter a material transfer and technology testing agreement, which will see the duo “assess opportunities to add value to Crawford” from what is referred to as the FutureSmart Mining tech program. That part of the arrangement will see ore samples delivered to Anglo American for testing to determine if processing recoveries can be improved while reducing the projects environmental footprint.

READ: Canada Nickel Delays Release Of Feasibility Study Until Q2 2023

The offtake arrangement is for a term of 15 years or a total of 65kt of nickel, which occurs later. If the FutureSmart tech improves the recoveries, Anglo American will also have offtake rights to 100% of any incremental production from the tech.

Canada Nickel last traded at $2.00 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 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.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Canada Nickel Reports After-Tax NPV Of $1.2 Billion At $7.75 Per Pound Nickel For Crawford

Canada Nickel Company (TSXV: CNC) this morning finally released its much-anticipated preliminary economic assessment for...

Tuesday, May 25, 2021, 07:42:27 AM

Canada Nickel Hits 354 Metres Of 0.24% Nickel At Reid Property

Canada Nickel Corp (TSXV: CNC) has officially confirmed its discovery at its Reid property, which...

Monday, June 27, 2022, 08:10:47 AM

Teck Resources To Combine With Anglo American To Establish Canadian-Based Critical Minerals Powerhouse

Canada is about to be the home of a major critical minerals powerhouse. Teck Resources...

Tuesday, September 9, 2025, 08:47:04 AM

Canada Nickel Publishes Initial Resource Estimates For Both Mann Central, Texmont

Canada Nickel (TSXV: CNC) this morning released initial mineral resource estimates for two separate properties,...

Tuesday, July 15, 2025, 08:27:37 AM

Canada Nickel Reports After-Tax NPV(8%) Of $2.5 Billion For Crawford Project

Canada Nickel Company (TSXV: CNC) released a much-awaited feasibility study this morning for its Crawford...

Thursday, October 12, 2023, 08:55:18 AM