Taykwa Tagamou FN invests $20 Million for 8% of Canada Nickel’s Crawford Project

By Kevin Vincent
Taykwa Tagamou Nation (TTN) and Canada Nickel Company Inc. have announced a landmark $20 million investment by TTN in Canada Nickel’s flagship Crawford Nickel Sulphide Project near Timmins. The deal marks a significant milestone in collaboration between industry and First Nations, positioning TTN as a key stakeholder in one of Canada’s most important critical mineral projects.
“This partnership exemplifies our vision of economic self-determination,” said Chief Bruce Archibald of TTN. “By utilizing our own capital to secure a significant stake in Canada Nickel, we’re ensuring we have a true seat at the decision-making table. This collaboration paves the way for future generations to thrive while maintaining our commitment to environmental stewardship and community well-being.”
TTN will invest in a $20 million secured Convertible Note, convertible into 16.67 million common shares of Canada Nickel at $1.20 per share. This represents an 8.4% equity interest in the Company based on current outstanding shares. The investment reflects TTN’s innovative approach to utilizing its own-source revenues for economic development and environmental leadership.
Explanation
A convertible note is a financial tool that acts as a mix between a loan and an investment in ownership. Essentially, it starts as a loan from the lender to the company, with the option for the lender to later convert the loan into shares of the company at a pre-agreed price. In this case, Taykwa Tagamou Nation (TTN) is investing $20 million in Canada Nickel through a convertible note, which carries an annual interest rate of 4.75%.
This arrangement gives both TTN and Canada Nickel flexibility. For TTN, it means they’ll earn interest on their investment as the company progresses. However, if TTN believes that the company’s value is increasing and its shares are worth more than the agreed price of $1.20, they can choose to convert the loan into approximately 16.67 million shares of Canada Nickel. This would give TTN an ownership stake in the company, allowing them to benefit directly from its success.
For Canada Nickel, the convertible note is an effective way to raise capital without immediately giving up ownership or committing to paying back the loan in cash. Instead, it provides the company with time to use the funds for growth and development, while offering TTN the opportunity to become a significant shareholder in the future.
This type of partnership is a win-win: TTN benefits from both the stability of interest payments and the potential upside of owning a stake in Canada Nickel, while Canada Nickel secures the resources needed to advance its flagship Crawford Nickel Sulphide Project.
Driving Economic Growth and Environmental Stewardship
The Crawford Nickel Sulphide Project is poised to become Canada’s largest nickel mine and a global leader in sustainable operations. Through its In-Process Tailings carbonation technology, the project is expected to be net-zero in carbon emissions, with the potential to store up to 1.5 million tonnes of CO2 annually during peak production.
“This transaction demonstrates what is possible when industry and First Nations work together towards a common goal,” said Mark Selby, CEO of Canada Nickel. “TTN’s leadership and vision have been instrumental in shaping this partnership. Together, we will unlock the full potential of the Timmins Nickel District while creating a model for responsible mineral development.”
Deputy Chief Derek Archibald of TTN added, “This agreement demonstrates what can be achieved when First Nations are creative with their own-source revenues, and respect, collaboration, and equity are at the forefront. It sets a new benchmark for First Nations engagement in the mining sector.”
Key Terms of the Convertible Note
The $20 million Convertible Note will carry a 4.75% annual coupon and mature in five years. TTN has the right to convert the note into 16.67 million shares, securing long-term equity in the project. TTN will also have a seat on Canada Nickel’s Board of Directors as long as it holds the note or at least 5% of the Company’s shares post-conversion.
Government Support
Ontario’s Minister of Mines, George Pirie, praised the collaboration, stating, “This agreement ensures local communities and First Nations share in the benefits of mineral development. Ontario is ready to responsibly supply the critical minerals the world needs, creating good jobs and economic opportunities.”
Stephen Crawford, Associate Minister of Mines, added, “This historic partnership highlights the potential of First Nations to play an ownership role in critical mineral projects, unlocking prosperity for entire regions.”
About Taykwa Tagamou Nation
Taykwa Tagamou Nation is a progressive First Nation in Northern Ontario, committed to economic self-determination and sustainability. Through strategic partnerships, TTN ensures its members directly benefit from economic opportunities while preserving cultural and environmental values.
About Canada Nickel Company
Canada Nickel Company is advancing the next generation of nickel-sulphide projects to supply critical minerals for electric vehicles and stainless steel. The Company’s Crawford Nickel Sulphide Project anchors its efforts to establish a world-class nickel district in Timmins, Ontario. With a focus on net-zero carbon initiatives, Canada Nickel aims to redefine sustainable mining for the global energy transition.
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