(Kitco News) - Global mining group Anglo American announced today it has agreed to acquire a 9.9% minority interest in Canada Nickel Company (TSXV: CNC), which owns the Crawford nickel project in Ontario, Canada.
In a statement, Anglo American said it will also provide technology expertise to the Crawford project and has the exclusive right to purchase up to 10% of recoveries of nickel concentrate, iron and chromium contained in the magnetite concentrates and any corresponding carbon credits from the Crawford project.
Anglo American added that its equity funding will support Canada Nickel's work to complete the necessary permitting requirements to proceed with development of the project.
"The investment is part of Anglo American's approach to expand its nickel product offering with additional battery-grade nickel for use in electric vehicles, complementing nickel production from Anglo American's PGMs mines in South Africa, as well as ferronickel from its nickel assets in Brazil which is mostly destined for the global stainless-steel industry," the company said.
In its today's press release, Canada Nickel informed that Anglo American to make an approximately $24 million investment in the company at a price of $1.95 per common share, a 10% premium to the 30-day volume weighted average price.
Located in a tier-one mining jurisdiction in Ontario, Canada, with optimal support infrastructure, the Crawford project is one of the largest undeveloped, bulk tonnage nickel sulphide resources in the world. If brought into production, the project is expected to play an important role in expanding the available supply of battery-grade nickel.
Global mining group Anglo American produces diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and steelmaking coal, and nickel, with crop nutrients in development.
Canada Nickel Company is advancing the next generation of nickel-sulphide projects to deliver nickel required to feed the high growth electric vehicle and stainless steel markets. Canada Nickel is currently anchored by its 100% owned flagship Crawford nickel-cobalt sulphide project in the heart of the prolific Timmins-Cochrane mining camp.
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