Highlights
- Samsung SDI to invest US$18.5
million and acquire approximately 15.6 million shares of
Canada Nickel, becomes an 8.7% shareholder
- Samsung SDI granted the right to purchase a 10% equity interest
in the Crawford project for US$100.5
million upon a final construction decision
- Samsung SDI will be granted certain offtake rights to the
Crawford project's nickel-cobalt products subject to the completion
of the 10% equity investment in the Crawford project
TORONTO,
Jan. 12,
2024 /CNW/ - Canada Nickel Company
Inc. ("Canada Nickel" or the "Company")
(TSXV: CNC) (OTCQX: CNIKF) is pleased to announce that the Company
has entered today into a Subscription Agreement with Samsung SDI
Co., Ltd. ("Samsung SDI") to make a US$18.5
million investment in Canada Nickel at a price of C$1.57 per Common Share. Upon closing of the
private placement contemplated in the Subscription Agreement,
Samsung SDI will own approximately 15.6 million shares of the
common shares of Canada Nickel, representing approximately 8.7% of
the Company's issued and outstanding shares on a non-diluted
basis.
"We are very pleased to welcome Samsung SDI
as an investor and project partner with Canada Nickel," said
Mark Selby, CEO of Canada Nickel.
"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. 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."
"We are pleased to partner with Canada Nickel through this
opportunity," said Ikhyeon Kim, Executive Vice President of Samsung
SDI. "We look forward to working with Canada Nickel to contribute
to the growing battery manufacturing industry through this
partnership."
Samsung SDI is a manufacturer of rechargeable
batteries for the IT industry, automobiles, and energy storage
systems ("ESS"), as well as cutting-edge materials used to produce
semiconductors and displays. Samsung SDI's executive managers and
staff members focus efforts to develop the next generation's growth
drivers in order to secure Samsung SDI's place as a creative leader
in the energy and materials industry.
Subscription Agreement and Investor Rights
Agreement
The Subscription Agreement and the Investor
Rights Agreement contain certain customary terms and conditions.
Samsung SDI will have a pro rata right in any future issuance of
Common Shares or any securities that are or may become convertible,
exchangeable or exercisable into Common Shares to maintain
its shareholding as long as it holds 7.5% or more of the
issued and outstanding Common Shares of the Company.
Project Investment and Offtake Rights
At closing of the private placement, Canada
Nickel will grant to Samsung the right to purchase a 10% equity
interest in the Crawford project for US$100.5 million, exercisable upon a final
construction decision. By exercising this right, Samsung SDI will
have the right to 10% of the nickel-cobalt production from the
Crawford project over the life of mine and the right to an
additional 20% of Crawford's nickel-cobalt production for 15 years
extendable by mutual agreement. The offtake rights will be based on
mutually agreed terms.
The closing of the private placement and related
agreements is subject to customary closing conditions including the
approval of the TSX Venture Exchange and is targeted to close on or
about January 31, 2024.
Advisors
Cutfield Freeman, Deutsche Bank, Harp Capital,
and Scotiabank acted as financial advisors to Canada Nickel.
About Canada Nickel
Canada Nickel Company Inc. 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 Company has applied in multiple
jurisdictions to trademark the terms NetZero Nickel™, NetZero
Cobalt™ and NetZero Iron™ and is pursuing the development of
processes to allow the production of net zero carbon nickel,
cobalt, and iron products. Canada Nickel provides investors with
leverage to nickel in low political risk jurisdictions. 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. For more information,
please visit www.canadanickel.com.
For further information, please
contact:
Mark Selby, CEO
Phone: 647-256-1954
Email: info@canadanickel.com
Cautionary Note and Statement Concerning Forward Looking
Statements
This press release contains certain information
that may constitute "forward-looking information" under applicable
Canadian securities legislation. Forward looking information
includes, but is not limited to, the potential of Crawford;
potential size of carbon storage facilities and ability to be a net
negative carbon footprint; mineral resource estimates and mineral
reserve estimates; ability to realize on projected economic
estimates, including EBITDA, NPV, IRR, all-in sustaining
costs, free cash flow and C1 cash costs; scale, capital costs,
operating costs and life of mine projections; potential to
commercialize the IPT Carbonation process; timing of receipt of
permits and commencement of construction and initial production;
eligibility for Canadian federal refundable tax credits; the
ability to sell marketable materials; strategic plans, including
future exploration and development results; and corporate and
technical objectives. Forward-looking information is necessarily
based upon several assumptions that, while considered reasonable,
are subject to known and unknown risks, uncertainties, and other
factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward-looking information. Factors that could affect the outcome
include, among others: future prices and the supply of
metals, the future demand for metals, the results of drilling,
inability to raise the money necessary to incur the
expenditures required to retain and advance the property,
environmental liabilities (known and unknown), general
business, economic, competitive, political and social
uncertainties, results of exploration programs, risks of the mining
industry, delays in obtaining governmental approvals, failure to
obtain regulatory or shareholder approvals, and the impact of
COVID-19 related disruptions in relation to the Company's business
operations including upon its employees, suppliers, facilities and
other stakeholders. There can be no assurance that such information
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on
forward-looking information. All forward-looking information
contained in this press release is given as of the date hereof and
is based upon the opinions and estimates of management and
information available to management as at the date hereof.
Canada Nickel disclaims any intention or obligation to update or
revise any forward-looking information, whether because of new
information, future events or otherwise, except as required by
law. Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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SOURCE Canada Nickel Company Inc.