UPDATED: Giga Metals Set For Takeoff Following Reuters-Sourced Tesla Rumour

Giga Metals Corp (TSXV: GIGA) appears to be set for takeoff this morning, despite currently being halted. After last trading at $0.58 before being halted, the equity is currently set to resume trading as high as $1.20 following rumours of a potential collaboration with electric vehicle manufacturer Tesla Inc. (NASDAQ: TSLA).

The metals company is currently working towards advancing its flagship Turnagain nickel sulphide deposit into an operational mine capable of producing up to 40,000 tonnes of nickel per year. In an exclusive story to Reuters this morning, it was reported that Tesla is in discussions with the miner to help develop a large mine to provide access to low carbon nickel for the automotive manufacturers batteries.

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UPDATE: Giga Metals has provided a response to the rumours, with CEO Martin Vydra commenting the following:

“Giga Metals has been mentioned in recent media articles as they pertain to ongoing efforts to advance the Turnagain deposit to commercialization. What I can say is that there is no material announcement forthcoming and we will keep regulators and investors informed of any material changes that require disclosure in accordance with securities regulations. It is evident that interest in sustainable and carbon neutral nickel production is driving renewed interests in deposits such as Turnagain as the world will need significant nickel to meet future EV demand. Turnagain is one of a handful of deposits that could meet this future demand.“

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The collaboration comes as Tesla looks to reduce its carbon footprint from the manufacturing process. With Giga Metals currently looking to produce “environmentally friendly nickel” by being one of the first carbon neutral mines, it appears that it has caught the eye of Tesla for a potential long term supply contract.

The cost of developing the Turnagain nickel mine has been stated to be less than $1 billion, which excludes the cost of bringing hydroelectric power to site. Composites analyzed from the site of the project in 2018 revealed that of eight composites, seven yielded high grade nickel concentrates average 23%, with a recovery ratio of 52%.

The project currently has a mineral resource estimate of 5,206 million pounds measured and indicated of contained nickel, and 312 million pounds measured and indicated of contained cobalt. Additional inferred resources of 5,473 million pounds and 327 million pounds also exists, respectively.

Giga Metals remains halted on the TSX Venture.

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Information for this briefing was found via Sedar, Reuters and Giga Metals Corp. 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.