- Canada Nickel Company will sell a US$18.5 million, 8.7 per cent stake in the company to Samsung SDI, a globally significant electric vehicle battery manufacturer
- The news follows similarly high-profile investments from Agnico Eagle Mines and Anglo American
- Canada Nickel Company is developing nickel-sulphide projects to supply the electric vehicle and stainless steel markets
- Canada Nickel Company stock has given back 15.05 per cent year-over-year, but has added 75.56 per cent since inception in February 2020
Canada Nickel Company (TSXV:CNC) will sell a US$18.5 million, 8.7 per cent stake in the company to Samsung SDI, a globally significant electric vehicle battery manufacturer.
Samsung SDI, majority owned by Samsung Electronics, provides rechargeable batteries for the IT, auto and energy storage industries, in addition to materials to produce semiconductors and displays. The company generated KRW 5.948 trillion (C$6 billion) in revenue and KRW 496 billion (C$504 million) in operating profits in Q3 2023.
The subscription agreement will see Samsung SDI purchase 15.6 million Canada Nickel shares at C$1.57. The investment includes the right to maintain pro rata ownership during future capital raises, so long as its holding remains at a minimum of 7.5 per cent.
Upon closing, Samsung SDI will also have the right to purchase a 10 per cent equity interest in Canada Nickel’s flagship Crawford project in Ontario for US$100.5 million, exercisable upon a final construction decision. This interest would include 10 per cent of the project’s nickel-cobalt production over the life of mine, as well as the right to purchase an additional 20 per cent of production for 15 years on mutually agreed terms.
The Crawford project is the world’s second largest nickel reserve and second largest resource, boasting a bankable feasibility study detailing production of 1.6 million tonnes of nickel, 58 million tonnes of iron, and 2.8 million tonnes of chrome over 41 years.
The companies expect the transaction to close by Jan. 31, subject to the approval of the TSXV.
“We are very pleased to welcome Samsung SDI as an investor and project partner with Canada Nickel,” Mark Selby, Canada Nickel’s chief executive officer, said in a statement. “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,” added Ikhyeon Kim, Samsung SDI’s executive vice president. “We look forward to working with Canada Nickel to contribute to the growing battery manufacturing industry through this partnership.”
Samsung SDI’s skin in the game follows two additional investments from major players in the mining space:
- Agnico Eagle Mines (TSX:AEM), the world’s third-largest gold producer, announced a 15.6 per cent stake in the company on Jan. 2
- Anglo American, a global miner that produced US$5.1 billion in EBITDA in the first half of 2023, took a 9.9 per cent stake in March 2023
Canada Nickel Company is developing nickel-sulphide projects to supply the electric vehicle and stainless steel markets.
Canada Nickel Company Inc. stock (TSXV:CNC) last traded at C$1.58 per share. The stock has given back 15.05 per cent year-over-year, but has added 75.56 per cent since inception in Feb. 2020.
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