Initial funding and patent transfers
When asked about the creation of its new firm, ExploreCo, CEO of Canada Nickel Company (TSXV: CNC), Mark Selby stated: “This transaction allows the Company to consolidate the surface rights, remaining claims, and patents around the Crawford Nickel Sulphide Project to simplify the development of Crawford and our future projects."
ExploreCo’s Board of Directors will be made up of two appointees from Canada Nickel, one from Noble and two that are mutually agreed upon. Current Canada Nickel Vice President of Exploration Steve Balch will lead ExploreCo.
Effective immediately, ExploreCo will be provided with $5 million of existing cash-in-hand from Canada Nickel, after which costs will be funded via a pro rata ownership, which will initially be 80% Canada Nickel and 20% Noble.
"Today is the first of a set of transactions designed to unlock value from our significant asset portfolio. The creation of ExploreCo will facilitate the ability to realize the future value of these properties that are not currently recognized in Canada Nickel's market value,” said Selby.
Going forward, the new company will be funded on a pro rata, or proportional, model with an 80% to 20% split between Canada Nickel Company and Noble Mineral Exploration (TSXV:NOB), respectively.
As part of the partnership, Noble will transfer 832 mining claims and 291 mining patents to Canada Nickel. These claims and patents are located in the Calder, Duff, Jamieson, Jessop and MacDiarmid townships. All parties, including previous claim owners with vended claims, will maintain existing royalty rights to ExploreCo claims. All together, ExploreCo will control a total of 1,989 claims.
Meanwhile, Noble will keep some exploration rights for properties in Carnegie, Prosser, Kidd and Wark townships. Canada Nickel will also issue 162,000 common shares to Noble, which will be used to consolidate a set of properties currently owned by a third party.
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Invest NowMining for a greener future
This venture will help mine for nickel sulfide, which is also a valubale resource needed for the production of electric vehicles, especially as the country braces to have 60% zero-emission vehicle sales by 2030, and 100% by 2035.
Mining for nickel sulfide is also crucial for stainless steel markets.
If completed as proposed, the Crawford Nickel Sulfide project is expected to output 275,000 tonnes of ore per day for about 42 years, according to the Canadian Impact Assessment Registry. The Government of Canada’s Impact Assessment is expected to be completed in 2026. The project will include both an open-pit nickel-cobalt mine and on-site metal mill 43 kilometres northeast of Timmins, ON.
Additionally, Canada Nickel is expected to propose the construction, operation, decommissioning and abandonment of an open-pit nickel-cobalt mine and on-site metal mill. The company is no stranger to more environmentally-friendly endeavours, as it has created wholly-owned NetZero Metals Inc. to develop zero-carbon production of nickel, cobalt and iron while also holding trademarks for NetZero NickelTM, NetZero CobaltTM and NetZero IronTM across several jurisdictions
Note that the transactions outlined under the letter of intent are subject to both parties negotiating a definitive agreement.
Getting exposure to Canada's rich resource sector
Investors interested in getting exposure to the potential surge in demand for nickel ore will want to confirm their ability to trade on the TSX Venture Exchange (TSXV).
The TSXV is a stock exchange in Calgary, AB that provides venture companies with effective access to capital while protecting investors. This exchange mostly contains small-cap Canadian stocks. As with the Canadian Depository for Securities Limited (CDS) clearinghouse, the TSX is a wholly-owned subsidiary and operated by the TMX Group.
As of 2024, there are approximately 1,700 companies listed on the TSX Venture Exchange, with nearly 400 included in the S&P/TSX Venture Composite Index (SPCDNX). More than half (53%) of the companies included in the S&P/TSX Venture Composite Index (SPCDNX) are mining companies, with another 15% made up of traditional energy firms. Most companies listed in the JX are located in British Columbia, Alberta, and Ontario, where these industries have prominent operations.
The TSXV was originally called the Canadian Venture Exchange (CDNX). It was rebranded to the TSX Venture Exchange after a merger between the Vancouver and Alberta stock exchanges in 1999. TSX Venture Exchange also has offices in Toronto, Vancouver, and Montreal.
How to buy TSXV shares
You can purchase shares in a firm listed on the TSX Venture Exchange — or get exposure to venture firms by investing in the S&P/TSX Venture Composite Index (SPCDNX) — through your online brokerage account. If you don't have an account — or looking to minimize trading fees — consider the following new customer promotions:
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- Wealthsimple: This online brokerage offers free trades on stocks and ETFs. Open a Wealthsimple account today and get a $25 trading bonus.
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Get A QuoteThe ABCs of ESG investing
For individuals that are keen on supporting companies that are principled and trying to better the environment and society, ESG investing has an allure, especially from a business perspective.
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—with files from Jack Lawson and Romana King
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