Canada Nickel Awards Exclusive Mandate for US$600 million Investment Tax Credit Loan Facility to SB1 Markets AS
Canada Nickel Company Inc. has appointed SB1 Markets AS as the exclusive advisor for arranging debt financing of up to US$600 million. This financing is intended to help the company monetize Investment Tax Credits anticipated from the construction of its Crawford Nickel Project. Canada Nickel aims to finalize the financing by the end of 2026, ahead of a projected final investment decision on the project in 2027. The company noted that there is no guarantee that the proposed financing will be completed, and any terms of such financing would be disclosed in a subsequent announcement.
Mark Selby, CEO and Director of Canada Nickel Company, expressed satisfaction in partnering with SB1 Markets, citing their experience and successful track record in financing natural resource projects. He emphasized that with a final permitting decision expected soon, the company can proceed more decisively on key financial components as it works towards a final investment decision. He described the bridge financing as essential to Crawford's capital structure, which will enable the utilization of Canada's investment tax credits to cover a significant portion of the equity needed to build the project.
SB1 Markets AS is a Nordic investment bank, co-owned by SpareBank 1 and Swedbank, offering a range of investment banking services including debt capital markets, equity capital markets, advisory, and corporate access. Headquartered in Norway and Sweden, the firm employs around 270 professionals and has facilitated transactions valued at approximately USD 70 billion over the past year, with a focus on financing natural resource projects.
Canada Nickel is focused on advancing nickel-sulphide projects to meet the demands of the growing electric vehicle and stainless steel markets. The company has applied for trademarks related to NetZero Nickel, NetZero Cobalt, and NetZero Iron, as well as pursuing the development of processes to achieve net zero carbon nickel, cobalt, and iron product production. Canada Nickel's flagship project, the Crawford Nickel-Cobalt Sulphide Project, is located in the Timmins-Cochrane mining camp.
This announcement contains forward-looking information under Canadian securities laws, including projections about tax credits, project financing, and production capabilities. There are inherent risks and uncertainties that could lead to actual results differing materially from these forward-looking statements. Factors such as loan repayment capabilities, regulatory approvals, project delays, and market conditions could impact the company's operations and outcomes.