Canada Nickel (TSXV: CNC) has received a C$20 million ($14m) investment from Taykwa Tagamou Nation, a Cree First Nation in northern Ontario. This is believed to be the first Indigenous funding in Canada’s critical minerals sector.
The investment involves buying convertible notes with a 4.75% annual interest rate for five years, The Globe & Mail reported Friday. They can be converted into common shares. If converted, Taykwa Tagamou Nation would acquire an 8.3% equity stake in the company.
Taykwa Tagamou Nation will reportedly get a board seat at Canada Nickel. The seat will give the community a say in developing the Crawford nickel-cobalt project near Timmins, Ontario.
The project, on the Indigenous group’s traditional lands, holds one of the world’s largest reserves. It has 2.4 billion tonnes at 0.24% nickel for 13.3 billion lb. of contained nickel, according to a 2023 feasibility study.
The company aims to begin production by late 2027 to supply Canada’s growing electric vehicle battery industry.
This deal is a big step for Indigenous participation in the resource sector. It has faced funding challenges due to restrictive provisions in the Indian Act. Unlike past investments that relied on government loan guarantees, the Taykwa Tagamou Nation is funding this investment from its own resources, the newspaper reported.
Both Canada Nickel and Taykwa Tagamou Nation declined The Northern Miner’s requests for comment.
The transaction is expected to be officially announced on Monday.
Canada Nickel shares closed up 2% on Friday at C$0.94, but is still down 20% over the past 12 months. Shares ranged between C$0.89 and C$2.24 over the period and it has a market capitalization of C$174 million.
