Aspiring Timmins miner Canada Nickel says Export Development Canada has shown interest in loaning them to up to $678 million (US$500 million) to develop its Crawford nickel mine project, 40 kilometres north of the city.
The Toronto mine developer said a letter of interest (LOI) was signed with the federal Crown agency on Aug. 30 to provide long-term debt financing of up to 18 years, subject to certain conditions that includes a “rigorous due diligence process.”
In a Sept. 6 news release, Canada Nickel CEO Mark Selby called the LOI is an “important milestone” toward putting together a financing package to construct its $2-billion open-pit mine, which the company’s has been hawking as Canada’s largest nickel sulphide mine.
The company wants to start mining by 2027 once it pockets the last government permits in mid-2025 to begin construction.
Crawford would be a low-grade nickel operation providing massive tonnages on a large property package in the Timmins area that could spawn more mines. Its target market is signing agreements with manufacturers in the North American electric vehicle supply chain.
Canada Nickel is also promoting Crawford as a clean and green, environmentally friendly operation that would produce no emissions from operations and in the natural environment as the ultramafic rock on its property has the ability to soak up carbon dioxide. It’s the kind of project teasers that draws Ottawa’s attention and its tax credit programs.
“We look forward to working closely with EDC to complete the due diligence and negotiation process to secure this funding,” added Selby in the release.
“The LOI, along with the refundable critical minerals and carbon capture and storage tax credits in excess of US$600 million that the company expects to qualify for the initial phase of Crawford's development, demonstrates the significant commitment of the federal government to support this critical project as a high priority.”
Selby said “good process” is being made with the company’s financial advisors Deutsche Bank, Scotiabank and Cutfield Freeman to secure the remaining project funding needed to start construction by the time the last government permits arrive in a year's time.
