Agnico Eagle Mines Limited late Friday announced that it has acquired 19.6 million units of Canada Nickel Company Inc (TSX-V:CNC, OTCQX:CNIKF), at a price of C$1.18 per unit, for a total consideration of about C$23,128,000.
Agnico Eagle’s investment gives it a 12% equity stake in Canada Nickel on a non-diluted basis, and 15.6% on a partially diluted basis.
Agnico acquired the shares as part of Canada Nickel’s C$34,692,000 flow-through brokered private placement financing.
Canada Nickel has a large, prospective land package and portfolio of early-stage nickel-sulphide deposits in northern Ontario, including its 100%-owned flagship Crawford nickel-cobalt sulphide project, in close proximity to Agnico Eagle's operations in the Abitibi region of Ontario and Quebec, according to the company.
Agnico's investment has also secured certain rights including the privilege to maintain its ownership percentage and the right to nominate a board member.
In February 2023, Anglo American made a $24 million investment in Canada Nickel.
Canada Nickel is targeting production at Crawford to begin by 2027, making it the second-largest nickel mine in the world.