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Canada Nickel Signs MOU with Glencore Canada for potential use of Kidd Concentrator and Metallurgical Site

Jan 11, 2021

Canada Nickel Company has entered into a non-binding, preliminary and non-exclusive Memorandum of Understanding with Glencore Canada Corporation in order to examine the potential use of Glencore's Kidd concentrator and metallurgical site in Timmins, for the treatment and processing of material mined from Canada Nickel’s 100% owned Crawford Nickel-Cobalt Sulphide project. Crawford is located 40 km north of Glencore’s operations.

Canada Nickel has completed an initial high-level assessment and will now proceed with a detailed study on the potential for upgrading excess capacity at the Kidd Concentrator and/or utilizing the existing infrastructure in place at the Kidd Met Site for milling and further processing the nickel-cobalt and magnetite concentrates that are expected to be produced from Crawford. Should the study deliver a positive outcome for both parties, the parties will continue good faith negotiations towards a binding agreement

This detailed study is expected to be completed by the end of March 2021. Ausenco Engineering Canada Inc. ("Ausenco"), currently retained as the lead study consultant for the Crawford Preliminary Economic Assessment (PEA) that is underway, has been engaged to support the assessment of the Kidd Met Site facilities.

“The opportunity to utilize the excess capacity and existing infrastructure at the Kidd Met Site provides the potential to allow a faster, simpler, smaller scale start-up of Crawford at a vastly lower capital cost while the Company continues to permit and develop the much larger scale project currently being contemplated. Given the potential for this significant change in the scope of the project start-up, the release of the PEA will be delayed until the end of March 2021 to allow this option, if successful, to be incorporated,” said Mark Selby, Chair and CEO of Canada Nickel.



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