SPC Nickel signs deal with Vale to consolidate, develop Sudbury-area nickel-copper deposits
With electric vehicles expected to drive a boom in global nickel demand, Vale has signed an agreement with a junior miner in Sudbury to develop nickel-copper deposits in the area.
SPC Nickel Corp.’s agreement with Vale will consolidate SPC’s West Graham deposit with Vale’s Crean Hill 3 deposit.
The properties are adjacent to the former Lockerby and Crean Hill mines, about 20 km southwest of Sudbury and Vale’s Clarabelle Mill in the Sudbury Mining Camp.
The agreement gives SPC Nickel the right to acquire a 100 per cent interest in the surface and mineral rights of Crean Hill 3. In exchange, Vale receives certain rights and royalties to minerals mined from both properties.
Specifically, Vale will receive 37 per cent of net profits and has the right of first refusal for any ore produced from the project. Vale also has the first chance to purchase the properties should SPC want to sell any part of their holdings down the road.
SPC must also produce a feasibility study on the project by 2026. The full details of the agreement can be found here.
“The signing of this agreement with Vale represents a transformative growth opportunity for SPC Nickel and its shareholders,” SPC CEO Grant Mourre said in a news release announcing the agreement.
Mourre said negotiations with Vale have been ongoing for 12 months to find an agreement that benefited both parties.
“The consolidated West Graham and Crean Hill 3 deposits give SPC Nickel, as operator, the ability to optimize synergies during the exploration, development and production stages of the project,” he said.
“We are very excited about the opportunities that this agreement brings to SPC Nickel and are looking forward to getting drills turning on the property in 2023.”
Infrastructure already exists for developing the deposits, including haul roads and high-voltage electrical power.
Mourre said consolidating West Graham and Crean Hill 3 gives SPC the chance “to significantly grow the West Graham deposit into a high-quality nickel-copper asset in one of the top nickel mining camps in the world.”
“Our recently completed drill program at West Graham has provided the technical team with a firm understanding of the types of mineralization we expect to define on the Crean Hill 3 property,” he said.
“More importantly, the controls on mineralization that we expect to guide us to higher-grade opportunities across the combined project.”
The West Graham deposit is located on SPC’s Lockerby East property. Historic estimates put the unmined near-surface West Graham nickel-copper deposit at more than 47,000 tonnes of nickel and 34,000 tonnes of copper.
“These grades have economic potential in the context of the Sudbury Mining Camp, as the deposit is located very near to surface and may be amenable to low-cost open pit mining,” the SPC news release said.
CTVNews.ca Top Stories
NDP motion regarding Palestinian statehood passes after major Liberal alterations
A motion from the federal New Democrats initially calling on Canada to recognize the 'State of Palestine' passed amid widespread acrimony on Monday, after the Liberals drastically altered its wording to see the government simply work towards that aim as part of a two-state solution.
'He didn't want to die': Family of Calgary man killed in standoff speaks out
Family of a Calgary man killed after a 30-hour standoff with police last week are speaking out, sharing details of the tense and heart-wrenching experience.
Toronto family doctor who called patient's body 'perfect' suspended for 3 months: tribunal
A family doctor in Toronto has been suspended for three months after a disciplinary tribunal found that he failed to follow proper protocols while examining a patient's breasts and made inappropriate comments about her body.
Ohio mom who left toddler alone 10 days when she went on vacation pleads guilty to aggravated murder
An Ohio mother whose 16-month-old daughter died after being left home alone in a playpen for 10 days last summer while she went on vacation was sentenced Monday to life in prison with no chance of parole.
Retired teacher pleads guilty to paying for sex with 15-year-old in Collingwood, Ont.
In a Barrie courtroom on Monday, a retired high school teacher from the Niagara Region pleaded guilty to sexual touching and obtaining sexual services from a 15-year-old boy in Collingwood in 2021.
Hertz CEO out following electric car 'horror show'
The company, which announced in January it was selling 20,000 of the electric vehicles in its fleet, or about a third of the EVs it owned, is now replacing the CEO who helped build up that fleet, giving it the company’s fifth boss in just four years.
5 charged in Calgary kidnappings that targeted women
Calgary police have charged five men in a pair of kidnappings last year that targeted innocent victims.
Demand soars for solar eclipse glasses in Canada. Are they worth buying?
The demand for total solar eclipse glasses used to safely view the rare celestial event has been ramping up as sellers, along with astronomy and eye-care experts in Canada, warn that viewing the eclipse with the naked eye is dangerous.
Canadian commander of volunteer fighter group dies in Ukraine
A Canadian-born commander of the so-called Norman Brigade, a volunteer fighting group in Ukraine, has died.