Canada Nickel Successfully Completes Front End Engineering Design for the Crawford Project and Provides Corporate Update
Press Release
Highlights
- NPV8% Improved by more than $300 million to $2.8 billion
- IRR Improved by 0.5% to 17.6% versus feasibility study
- Increase in initial capital cost held to 5% to $2.0 billion
(All amounts in US dollars, unless otherwise indicated)
TORONTO, March 03, 2025 – Canada Nickel Company Inc. (“Canada Nickel” or the “Company”) (TSXV:CNC) (OTCQX:CNIKF) is pleased to provide results of Front End Engineering and Design (“FEED”) activities for its Crawford Project, which were completed by the Company’s consultants. Engineering activities focused on the initial capital cost utilizing data collected from a winter geotechnical programme, a test piling program and updated quotes. The mine plan was also re-sequenced to accelerate delivery of higher value ore from the East Zone and reduce pre-stripping by 30%.
Mark Selby, CEO of Canada Nickel, said, “We are very pleased to complete another major milestone as we advance Crawford towards a construction decision. Many mining development projects have seen significant cost inflation over the last several years – I am very proud of our team and the robustness of our project that the initial capital cost increased by only 5%, particularly since the feasibility study had a cost basis dating from December 2022. The resequencing of the mining plan and updated operating costs have also yielded improved economics for the project.”
Mr. Selby continued, “With this milestone complete, we look forward to working with our project financing partners Scotiabank, Deutsche Bank, and Cutfield Freeman to complete the funding package for Crawford by year-end to be positioned to make a construction decision once permits are received. We are planning to utilize capital from this funding package for order placement of long-lead items and engineering activities. The Company is also pursuing a number of non-equity financing initiatives – including government funding – to provide the funding to complete the remaining permitting and engineering activities this year.”
Front End Engineering Design Results
Table 1 compares key metrics for the FEED design with the Company’s feasibility study in respect of the Crawford Project that was published in November 2023 (the “Feasibility Study”). To maintain comparability, all key economic assumptions are unchanged since the Feasibility Study, such as the notable exclusion of the Carbon Capture, Utilization and Storage Investment Tax Credits (“CCUS credits”)
IBF4
