Canadian nickel project development company Canada Nickel Company Inc.（TSXV:CNC）received a new investment. Samsung SDI, a South Korean battery maker, invested $18.5 million and took an 8.7% stake in the company, the company said.
Samsung SDI makes rechargeable batteries for the technology industry, cars and energy storage systems.
Mark Selby, CEO of Canada Nickel, said that the nickel that the company will produce is crucial to the supply chain of electric vehicles in North America and Europe, and only companies that recognize this can we build long-term partnerships with them.
Shares of Canada Nickel rose 3.1% to C $1.63 in Friday trading on the news, and its market value rose to C $231.6 million ( $172.7 million).
Canada Nickel said it also granted Samsung SDI the right to acquire a 10% stake in the Crawford project, north of Timmins, Ontario, for $100.5 million, subject to a final construction decision. By exercising this right, Samsung SDI will be entitled to 10% of the project’s nickel and cobalt production during the life of the mine, and 20% of the project’s production for another 15 years upon mutual agreement.
Crawford currently has the second largest nickel resource in the world. The feasibility study in October last year showed that the total nickel resources of the project were 2.46 billion tons, grading 0.24%, containing 13.3 billion pounds of nickel, with an after-tax net present value (8% discount rate) of 2.6 billion Canadian dollars and an internal rate of return of 18.3%.
Gold miner Agnico Eagle Mines Ltd (TSX: AEM) (NYSE: AEM) also invested in Canada Nickel and took a 12% stake in the company.
