Government agency Export Development Canada (EDC) may provide a $500-million loan for the Crawford nickel sulphide project in Timmins, Ontario.
This is according to project owner Canada Nickel, which on Friday announced the receipt of a letter of interest (LoI) from EDC.
“We are very pleased with the LOI as it marks an important milestone towards securing a full financing package for Crawford. We look forward to working closely with EDC to complete the due diligence and negotiation process to secure this funding,” said Canada Nickel CEO Mark Selby.
He added that the LOI, along with the refundable critical minerals and carbon capture and storage tax credits or more than $600-million that the company expected to qualify for the initial phase of Crawford’s development, demonstrated the commitment of the federal government to support the project.
Selby also reported good progress with its financial advisers Deutsche Bank, Scotiabank and Cutfield Freeman to secure the remaining project funding required to begin construction once permits were in hand. This is expected to be by mid-2025.
An October 2023 bankable feasibility study (BFS) pegs capital costs at $1.9-billion for the initial phase, which will have a throughput of 60 000 t/y. The second phase, planned for commissioning during the fourth year, will double mill throughput to 120 000 t/d at a cost of $1.6-billion.
The Crawford mine will produce 83-million pounds (38 000 t) of nickel a year over a 41-year life, with production of 48 000 t/y of nickel, 8 000 t/y of cobalt, 13 000 oz/y of palladium and platinum, 1.6-million tonnes a year of iron and 76 000 t/y of chrome over its 27-year peak period.
The BFS calculates net life-of-mine C1 cash costs of $0.39/lb nickel, placing Crawford in the first quartile of the cost curve. Net all-in sustaining costs are $1.21/lb nickel.
On average, Crawford is projected to earn revenue of $1-billion a year and deliver free cashflow of $546-million.