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Samsung buys into Timmins nickel company

EV battery manufacturer comes aboard to source nickel and cobalt from Canada Nickel's Crawford Project
Mark Selby 2 Canada Nickel
Canada Nickel CEO Mark Selby (Company photo)

Timmins mine developer Canada Nickel has added another heavyweight investor into the fold. 

Samsung SDI is investing US$18.5 million in the Toronto company to become an 8.7 per cent shareholder. In a private placement, Samsung will own 15.6 million common shares of Canada Nickel.

It comes on the heels of an earlier investment this month by Agnico Eagle to become a 12 per cent shareholder of Canada Nickel.

Samsung SDI is a global manufacturer of rechargeable batteries for the IT industry, automobiles, and energy storage systems.

Canada Nickel is pitching its Crawford Project to investors and the market as a “next generation” zero-emission mine and mill development feeding nickel sulphide, cobalt and iron to the global electric vehicle and stainless steel markets.

Among its roster of development and exploration properties, Crawford is its anchor project, located 40 kilometres north of Timmins.  A feasibility study released on the project last fall shows a 41-year mine life an an open-pit operation.

The private placement is expected to close at the end of January. 

There’s also a nickel and cobalt off-take agreement in place.

Canada Nickel will grant Samsung the right to purchase a 10 per cent equity interest in the Crawford project for US$100.5 million, exercisable upon a final mine construction decision. By exercising this right, Samsung SDI will have the right to 10 per cent of the nickel-cobalt production mined at Crawford over the life of mine, and the right to an additional 20 per cent for 15 years. The off-take rights will be based on mutually agreed terms.

"As we advance the Crawford Nickel Sulphide Project, it is critical to form long-term partnerships with companies that truly understand how crucial this production is for electric vehicle supply chains across North America and Europe,” said Canada Nickel CEO Mark Selby in a statement.

“As one of the world's leading electric vehicle battery manufacturers, Samsung SDI not only understands our vital role in these supply chains, but also believes in Canada Nickel's vision for responsible, large-scale, net-zero carbon nickel production. Together, our companies are paving the way for a more sustainable future."

Ikhyeon Kim, executive vice-president of Samsung SDI, said: "We look forward to working with Canada Nickel to contribute to the growing battery manufacturing industry through this partnership."