The UK-based mining company will also have the exclusive right to purchase up to 10% of nickel concentrate, iron, and chromium recoveries found in the magnetite concentrates as well as any associated carbon credits from the project
Anglo American has agreed to buy a minority stake of 9.9% in Canada Nickel, the 100% owner of the Crawford nickel project in Ontario, Canada, for C$24m ($17.9m).
The stake will be bought through a private placement at a price of C$1.95 ($1.45) per common share of Canada Nickel.
As part of the agreement, Anglo American will offer technical expertise to the Crawford nickel project.
The UK-based mining company will also have the exclusive right to buy up to 10% of nickel concentrate, iron, and chromium recoveries found in the magnetite concentrates as well as any associated carbon credits from the project.
Besides, a material transfer and technology testing agreement has been signed to allow Canada Nickel to assess opportunities to add value to the nickel-cobalt sulphide project from Anglo American’s FutureSmart Mining technology programme.
The equity funding from Anglo American is expected to support the Canadian mining company to advance the works to wrap up the necessary permitting requirements to proceed with the development of the Crawford nickel project
Canada Nickel chair and CEO Mark Selby said: “We are very pleased to welcome Anglo American, a leading global mining company, as a cornerstone investor in Canada Nickel. Today’s announcement is another key milestone as we advance Crawford towards production.
“Our team is looking forward to working with Anglo American to identify opportunities to apply their industry leading mining innovation technology to add additional value to Crawford.”
Through the investment, Anglo American expects to broaden its nickel product offering with more battery-grade nickel that can be used in electric vehicles.
Anglo American marketing business CEO Peter Whitcutt said: “As a responsible provider of future-enabling metals and minerals to our customers, we are committed to supporting our industry in increasing the availability of critical materials that will underpin the success of the energy transition, and to do so sustainably.”
The private placement, offtake, and technology agreements, which are subject to customary conditions, are expected to close by the month-end.