Canada Nickel Company Inc. (TSXV: CNC | OTCQX: CNIKF) has entered into a subscription agreement with Samsung SDI Co., Ltd. for a US$18.5M investment in Canada Nickel at a price of C$1.57 per common share.
Upon closing of the private placement contemplated in the subscription agreement, Samsung SDI will own approximately 15.6M shares of the common shares of Canada Nickel, representing approximately 8.7% of the company’s issued and outstanding shares on a non-diluted basis.
“We are very pleased to welcome Samsung SDI as an investor and project partner with Canada Nickel,” said Mark Selby, CEO of Canada Nickel. “As we advance the Crawford Nickel Sulphide Project, it is critical to form long-term partnerships with companies that truly understand how crucial this production is for electric vehicle supply chains across North America and Europe. As one of the world’s leading electric vehicle battery manufacturers, Samsung SDI not only understands our vital role in these supply chains, but also believes in Canada Nickel’s vision for responsible, large scale, net-zero carbon nickel production. Together, our companies are paving the way for a more sustainable future.”
Samsung SDI is a manufacturer of rechargeable batteries for the IT industry, automobiles, and energy storage systems, as well as cutting-edge materials used to produce semiconductors and displays. Samsung SDI’s executive managers and staff members focus efforts to develop the next generation’s growth drivers in order to secure Samsung SDI’s place as a creative leader in the energy and materials industry.
Furthermore, at closing of the private placement, Canada Nickel will grant to Samsung the right to purchase a 10% equity interest in the Crawford project for US$100.5M, exercisable upon a final construction decision. By exercising this right, Samsung SDI will have the right to 10% of the nickel-cobalt production from the Crawford project over the life of mine and the right to an additional 20% of Crawford’s nickel-cobalt production for 15 years extendable by mutual agreement.
To find out more, please visit www.canadanickel.com
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