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
Arrest made, manslaughter charge pending in 2022 death of Calgary toddler
Calgary police have arrested a man and a charge is pending in connection with the death of a toddler in 2022.
'A living nightmare': Winnipeg woman sentenced following campaign of harassment against man after online date
A Winnipeg woman was sentenced to house arrest after a single date with a man she met online culminated in her harassing him for years, and spurred false allegations which resulted in the innocent man being arrested three times.
Where did the gold go? Crime expert weighs in on unfolding Pearson Airport heist investigation
Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.
Why drivers in Eastern Canada could see big gas price spikes, and other Canadians won't
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
'They needed people inside Air Canada:' Police announce arrests in Pearson gold heist
Police say one former and one current employee of Air Canada are among the nine suspects that are facing charges in connection with the gold heist at Pearson International Airport last year.
House admonishes ArriveCan contractor in rare parliamentary show of power
MPs enacted an extraordinary, rarely used parliamentary power on Wednesday, summonsing an ArriveCan contractor to appear before the House of Commons where he was admonished publicly and forced to provide answers to the questions MPs said he'd previously evaded.
Here's why experts don't think cloud seeding played a role in Dubai's downpour
Scientists say it's highly unlikely cloud seeding is responsible for the heavy rains that have caused flooding in the United Arab Emirates this month, and that climate change is the more likely culprit.
Doug Ford calls on Ontario Speaker to reverse Queen's Park keffiyeh ban
Ontario Premier Doug Ford is calling on Speaker Ted Arnott to reverse a ban on keffiyehs at Queen's Park, describing the move as “needlessly” divisive.
Trump lawyers say Stormy Daniels refused subpoena outside a Brooklyn bar, papers left 'at her feet'
Donald Trump's legal team says it tried serving Stormy Daniels a subpoena as she arrived for an event at a bar in Brooklyn last month, but the porn actor, who is expected to be a witness at the former president's criminal trial, refused to take it and walked away.