Read more: Canada Nickel raises $20-million from Ontario First Nation in record financing

Canada Nickel Co. Inc. has raised $20 million from Taykwa Tagamou Nation, a Cree First Nation in Northern Ontario. This is the largest investment of its kind in Canada’s critical minerals industry and could serve as a model for other companies. In exchange for their investment, the First Nation is buying convertible notes with a 4.75% annual interest rate. These notes can be turned into an 8.3% equity stake in Canada Nickel. The deal also gives Taykwa Tagamou Nation a seat on Canada Nickel’s board, allowing them to help guide the Crawford nickel-cobalt project.

The Crawford project, located near Timmins, Ontario, aims to supply nickel for the electric vehicle (EV) industry. Canada Nickel plans to use carbon-capture technology to reduce the environmental impact of the project. Chief Bruce Archibald of Taykwa Tagamou Nation explained that the community is investing because the project focuses on environmental sustainability. The First Nation has been working with Canada Nickel since 2019 and is also exploring ways to support the project with energy and mining truck services.

This deal is important for both the community and the mining industry. Historically, Indigenous groups faced challenges investing in large-scale resource projects due to laws that limited access to capital. However, new funding programs have made such investments possible. Taykwa Tagamou Nation does not need a loan for the investment, as the community has the funds available. Canada Nickel is now waiting for permits to begin building Crawford, with production expected by late 2027.

Source: The Globe & Mail (Ontario Edition)

Author: Niall McGee

Published: December 17, 2024

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