Canada Nickel close to securing $676M loan to develop massive nickel deposit near Timmins

Canada Nickel Company Inc. says Export Development Canada is willing to provide up to US$500 million (C$676 million) for the development of the Crawford Nickel Sulphide Project in Timmins.

The loan would have to be repaid in 18 years, Canada Nickel said in a news release Sept. 6.

"EDC’s participation in the project financing is subject to the successful completion of its rigorous due diligence process," the release said.

The Crawford deposit, located on Highway 655 near the Highway 11 intersection, is one of the largest nickel deposits in the world.

Mark Selby, CEO of Canada Nickel, said in the release that the EDC's interest in helping fund the project is an important step toward fully financing the company's plans for Crawford.

"We look forward to working closely with EDC to complete the due diligence and negotiation process to secure this funding," Selby said.

When combined with refundable critical minerals and carbon capture and storage tax credits, the support totals more than US$600 million (C$813 million), demonstrating "the significant commitment of the federal government to support this critical project as a high priority," the company said.

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"Additionally, we continue to make good progress with our financial advisers Deutsche Bank, Scotiabank and Cutfield Freeman to secure the remaining project funding required to begin construction when permits are received, which we expect to be by mid-2025.”

The EDC is a Crown corporation that offers financing and expertise that helps "Canadian companies … enter new markets, reduce financial risk and grow their business as they go from local to global," the release said.

"Canada Nickel is currently anchored by its 100 per cent owned flagship Crawford Nickel Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp."