Anglo American completes investment in Canada Nickel Company
March 02, 2023
44.35 Million CAD
On March 2, 2023, Anglo American plc ("Anglo American") completed its previously announced strategic investment in Canada Nickel Company Inc. ("Canada Nickel") for aggregate gross proceeds of C$26,154,294.71 at a price of C$1.95 for 12,569,235 common shares in the capital of Canada Nickel, and 952,623 Common Shares at C$1.77 per share. Upon completion of the investment, Anglo American now holds 9.9% of the issued and outstanding Common Shares. In connection with the strategic investment, Canada Nickel and Anglo American entered into (i) an Investor Rights Agreement which provides Anglo American with certain participation and nomination rights, subject to minimum shareholding requirements, (ii) a binding offtake term sheet and (iii) a material transfer and technology testing agreement. On March 2, 2023, Canada Nickel Company Inc. also concurrently closed its "bought deal" prospectus offering for aggregate gross proceeds of C$18,208,763.
The strategic investment and concurrent private placement provide Anglo American with a strong position in Canada Nickel while the off-take secures Anglo American rights to future metal concentrate and the material transfer and technology testing agreement provide Anglo American with an opportunity to test its FutureSmart Mining technology.
Anglo American, headquartered in London, UK, is a leading global mining company with a portfolio of world-class competitive operations and a broad range of future development options.
Canada Nickel engages in the exploration, discovery, and development of nickel sulphide assets and has a 100% interest in the Crawford Nickel project in northern Ontario.
McCarthy Tétrault advised Anglo American with a team led by Eva Bellissimo that included Roger Taplin, Lama Kahiel, Ainslie Hurd (Business), and Jade Buchanan (Technology).