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Canada Nickel raises nearly $10 million for Crawford exploration

Crawford nickel-cobalt sulphide project. (Image courtesy of Canada Nickel Company.)

Canada Nickel (TSXV: CNC) has raised C$12.2 million ($9.8 million) through the sale of flow-through shares in a brokered private placement. The company sold nearly 3 million shares at an issue price of C$4.10 each.

The gross proceeds will be used for eligible Canadian exploration expenses at its projects in Ontario.

At the end of May, Canada Nickel released a positive preliminary economic assessment for the Crawford nickel-chrome project 40 km north of Timmins. Crawford is a sulphide deposit that could support a 25-year open pit mine and mill project. Over that time, the mine is expected to produce 842,000 tonnes of nickel, 21 million tonnes of iron and 1.5 million tonnes of chrome.

The project has an after-tax net present value (8% discount) of $1.2 billion and an after-tax internal rate of return of 16%. A conventional mill will produce high grade (35%) and standard (12%) grade nickel concentrates as well as magnetite concentrate containing 45% to 50% iron and 3% chrome.

The feasibility study is underway and should be ready by the middle of next year. The Crawford project is to be designed to produced 93% less carbon dioxide emissions than the industry average.

(This article first appeared in the Canadian Mining Journal)