Canada Nickel (TSXV:CNC) - Crawford Project Advances with FEED Completion, Eyes 2025 Construction

Mar 4, 2025

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Interview with Mark Selby, CEO of Canada Nickel

Our previous interview: https://www.cruxinvestor.com/posts/canada-nickel-tsxvcnc-historic-20m-first-nations-investment-6434

Recording date: 2nd March 2025

Canada Nickel Company has successfully completed Front-End Engineering Design (FEED) for its flagship Crawford Nickel Project, advancing engineering to approximately 30% completion. Despite a 5% increase in capital costs, the project has demonstrated improvements in Net Present Value (NPV) and Internal Rate of Return (IRR).

In a strategic optimization move, the company modified its mine plan to prioritize the East Zone over the Main Zone. This decision reduces stripping requirements and truck fleet needs, which helps offset capital cost increases. CEO Mark Selby highlighted the company's efficient development approach, noting they've progressed from "fifth drill hole to feasibility study in just over four years," significantly faster than industry averages of 7-10 years.

On the financing front, Canada Nickel has secured letters of intent for $500 million USD from Export Development Canada and $500 million CAD from another financial institution. The next step involves an independent engineering review to validate the company's work. Notably, Middle Eastern sovereign wealth funds are showing substantial interest in the project as they seek to diversify their economies beyond oil.

Beyond Crawford, the company aims to establish the Timmins area as a premier nickel district. Plans include publishing resources for six additional properties, bringing their total to nine resources in the district. Selby claims the total nickel resource is expected to exceed "the total endowment at Sudbury, which was the world's largest nickel sulfide district."

Community partnerships represent another significant advancement, with Canada Nickel announcing construction projects to be delivered by First Nations communities through a business vehicle called Wabun. This approach demonstrates local support and strengthens the company's social license as it progresses through permitting.

The company remains on track with its permitting timeline, currently in the final approval stage with the federal government. Approvals are expected by year-end, with provincial permits to follow. Canada Nickel is also exploring non-equity financing options, including royalties, to minimize shareholder dilution.

The Crawford project is positioned to become "the Western world's largest nickel sulfide operation" with the flexibility to serve both EV battery and stainless steel markets. This strategic positioning comes at a time when Western economies are actively seeking to reduce dependence on Chinese-dominated supply chains for critical minerals, potentially creating significant long-term value for the company and its investors.

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