Canada Nickel (TSXV:CNC) - 1st Resource of 7 New Resources All By Q1/25

Jul 18, 2024

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Interview with Mark Selby, CEO of Canada Nickel

Our previous interview: https://www.cruxinvestor.com/posts/canada-nickel-tsxvcnc-nickel-mega-district-opens-up-us-markets-5401

Recording date: 17th July 2024

Canada Nickel Company (TSX-V: CNC) is rapidly emerging as a key player in the global nickel market, strategically positioned to meet the growing demand for responsibly sourced battery materials. The company is advancing its flagship Crawford Nickel project while simultaneously unlocking the potential of the broader Timmins Nickel District in Ontario, Canada.

The company recently announced a significant milestone with the release of its maiden resource estimate for the Deloro property, marking the first of seven additional resources expected by Q1 2025. This expansion strategy underscores Canada Nickel's vision to establish Timmins as a world-class nickel sulfide district, with a land package covering approximately ten times the geophysical footprint of Crawford.

Crawford itself is already considered one of the world's largest undeveloped nickel sulfide deposits. The project is progressing through Front-End Engineering Design (FEED), optimizing its development plan and preparing for long-lead equipment orders. Permitting is advancing, with federal approvals anticipated by mid-2025, aligning with the company's target for a construction decision.

Recent market dynamics have created a favorable backdrop for Canada Nickel's projects. BHP's decision to shut down its Western Australia nickel operations until at least 2027 has significant implications for global supply. Combined with geopolitical constraints on Russian and Chinese production, this leaves a substantial gap in the nickel sulfide market that Crawford and Canada Nickel's other projects are well-positioned to fill.

The company is pursuing an innovative financing strategy to minimize dilution at the parent company level while securing necessary capital. This approach includes targeting project-level equity, leveraging Canadian government incentives for critical minerals and carbon capture, and exploring strategic partnerships. CEO Selby emphasizes the unique opportunity presented by current market conditions and government support for critical minerals development.

Canada Nickel's focus on producing "clean, green nickel" aligns with growing demands for environmentally responsible mining practices. The company's ultramafic deposits have the added benefit of natural carbon sequestration properties, potentially offering a significant competitive advantage in the evolving battery supply chain.

Investors should be aware of several potential catalysts over the next 12-18 months, including additional resource estimates from regional properties, advancement of Crawford engineering, progress on permitting milestones, and potential announcements related to project financing and strategic partnerships.

While challenges remain in terms of project execution and market volatility, Canada Nickel's strategic approach to developing a world-class nickel district in a stable jurisdiction creates a compelling value proposition. As the electric vehicle revolution drives demand for battery materials, the company's focus on responsible nickel production could prove increasingly attractive to both investors and end-users.

For investors considering exposure to the critical minerals sector, Canada Nickel offers a unique opportunity to participate in the development of a potentially transformative nickel supply source. However, as with any pre-production mining company, thorough due diligence is essential, and investors should carefully consider their risk tolerance when evaluating an investment in Canada Nickel.

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View Canada Nickel's company profile: https://www.cruxinvestor.com/companies/canada-nickel