Canada Nickel has secured a letter of interest (LOI) for long-term debt financing of up to $500m from Export Development Canada (EDC) for the development of the Crawford nickel sulphide project in Ontario, Canada.
As per the LOI, EDC will consider a debt tenor of up to 18 years, contingent upon certain conditions.
The Canadian export credit agency’s participation in the Crawford nickel sulphide project financing is subject to the successful completion of its due diligence process.
Canada Nickel CEO Mark Selby said: “We are very pleased with the LOI as it marks an important milestone towards securing a full financing package for Crawford. We look forward to working closely with EDC to complete the due diligence and negotiation process to secure this funding.
“The LOI, along with the refundable critical minerals and carbon capture & storage tax credits in excess of US$600 million that the company expects to qualify for the initial phase of Crawford’s development, demonstrates the significant commitment of the federal government to support this critical project as a high priority.”
Located in Timmins Nickel District, the Crawford project is expected to have a mine ore production capacity of 275,000 tonnes per day and a mill ore input capacity of 120,000 tonnes per day.
The Canadian nickel sulphide project is estimated to operate for approximately 43 years.
Canada Nickel commenced the front-end engineering design (FEED) at the Crawford project in April of this year.
The FEED is led by the company’s engineering partner Ausenco Engineering Canada and supported by various engineering firms involved in the project’s feasibility study.
According to the bankable feasibility study (BFS) released in October 2023, the Crawford project will require a total capital expenditure (capex) of $5.16bn over its life of mine.
Canada Nickel expects to commence construction at the Crawford nickel sulphide project by mid-2025.
