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Canada Nickel Announces Formation and Partial Sale of RoyaltyCo Subsidiary

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Canada Nickel Company (OTCQB: CNIKF) has announced a strategic transaction to create a new royalty company ('RoyaltyCo') through a binding Letter of Intent with Edmiston Drive Capital Corp. (EDCC). The deal involves:

- Canada Nickel receiving $8 million in cash and 8.9 million EDCC shares
- Maintaining a 62% ownership interest in EDCC
- Granting 1% NSR royalties on its regional exploration properties in the Timmins Nickel District (excluding Crawford, Kingsmill, and Dargavel)

The transaction is expected to close by April 30, 2025, subject to TSXV approval. EDCC will raise $9 million through common and preferred shares. The new board will include two Canada Nickel appointees, one EDCC appointee, and two independent directors.

Canada Nickel Company (OTCQB: CNIKF) ha annunciato una transazione strategica per creare una nuova società di royalty ('RoyaltyCo') attraverso una Lettera di Intenti vincolante con Edmiston Drive Capital Corp. (EDCC). L'accordo prevede:

- Canada Nickel riceverà 8 milioni di dollari in contante e 8,9 milioni di azioni EDCC
- Mantenere un 62% di partecipazione in EDCC
- Concedere royalty NSR dell'1% sulle sue proprietà di esplorazione regionali nel Distretto Nickel di Timmins (escludendo Crawford, Kingsmill e Dargavel)

La transazione dovrebbe chiudersi entro il 30 aprile 2025, soggetta all'approvazione di TSXV. EDCC raccoglierà 9 milioni di dollari attraverso azioni ordinarie e privilegiate. Il nuovo consiglio includerà due nominati da Canada Nickel, un nominato da EDCC e due direttori indipendenti.

Canada Nickel Company (OTCQB: CNIKF) ha anunciado una transacción estratégica para crear una nueva empresa de regalías ('RoyaltyCo') a través de una Carta de Intención vinculante con Edmiston Drive Capital Corp. (EDCC). El acuerdo implica:

- Canada Nickel recibirá 8 millones de dólares en efectivo y 8,9 millones de acciones de EDCC
- Mantener un 62% de participación en EDCC
- Otorgar regalías NSR del 1% sobre sus propiedades de exploración regional en el Distrito Nickel de Timmins (excluyendo Crawford, Kingsmill y Dargavel)

Se espera que la transacción se cierre antes del 30 de abril de 2025, sujeta a la aprobación de TSXV. EDCC recaudará 9 millones de dólares a través de acciones ordinarias y preferentes. La nueva junta incluirá dos designados por Canada Nickel, uno designado por EDCC y dos directores independientes.

캐나다 니켈 컴퍼니 (OTCQB: CNIKF)는 에드미스턴 드라이브 캐피탈 코퍼레이션(EDCC)과의 구속력 있는 의향서(Letter of Intent)를 통해 새로운 로열티 회사('RoyaltyCo')를 만들기 위한 전략적 거래를 발표했습니다. 이 거래에는 다음이 포함됩니다:

- 캐나다 니켈은 800만 달러의 현금과 890만 EDCC 주식을 받습니다.
- EDCC에서 62%의 소유권을 유지합니다.
- 팀민스 니켈 지구의 지역 탐사 자산에 대해 1% NSR 로열티를 부여합니다(크로포드, 킹스밀 및 다르가벨 제외)

이번 거래는 2025년 4월 30일까지 마감될 것으로 예상되며, TSXV의 승인을 받을 예정입니다. EDCC는 보통주와 우선주를 통해 900만 달러를 모금할 것입니다. 새로운 이사회는 캐나다 니켈에서 지명한 두 명, EDCC에서 지명한 한 명, 그리고 두 명의 독립 이사로 구성될 것입니다.

Canada Nickel Company (OTCQB: CNIKF) a annoncé une transaction stratégique pour créer une nouvelle société de redevances ('RoyaltyCo') par le biais d'une Lettre d'Intention contraignante avec Edmiston Drive Capital Corp. (EDCC). L'accord comprend :

- Canada Nickel recevra 8 millions de dollars en espèces et 8,9 millions d'actions EDCC
- Maintenir un 62% d'intérêt de propriété dans EDCC
- Accorder des redevances NSR de 1% sur ses propriétés d'exploration régionales dans le District Nickel de Timmins (à l'exception de Crawford, Kingsmill et Dargavel)

La transaction devrait être finalisée d'ici le 30 avril 2025, sous réserve de l'approbation de la TSXV. EDCC lèvera 9 millions de dollars par le biais d'actions ordinaires et privilégiées. Le nouveau conseil d'administration comprendra deux membres nommés par Canada Nickel, un membre nommé par EDCC et deux administrateurs indépendants.

Canada Nickel Company (OTCQB: CNIKF) hat eine strategische Transaktion angekündigt, um ein neues Royalty-Unternehmen ('RoyaltyCo') durch eine verbindliche Absichtserklärung mit der Edmiston Drive Capital Corp. (EDCC) zu schaffen. Der Deal umfasst:

- Canada Nickel erhält 8 Millionen Dollar in bar und 8,9 Millionen EDCC-Aktien
- Beibehaltung eines 62% Anteils an EDCC
- Gewährung von 1% NSR-Royalty auf seine regionalen Explorationsimmobilien im Timmins Nickel District (außer Crawford, Kingsmill und Dargavel)

Die Transaktion wird voraussichtlich bis zum 30. April 2025 abgeschlossen, vorbehaltlich der Genehmigung durch die TSXV. EDCC wird 9 Millionen Dollar durch Stamm- und Vorzugsaktien aufbringen. Der neue Vorstand wird zwei von Canada Nickel ernannte Mitglieder, ein von EDCC ernanntes Mitglied und zwei unabhängige Direktoren umfassen.

Positive
  • Receives $8 million cash injection without direct equity dilution
  • Maintains majority control (62%) in the new royalty company
  • Creates new value stream from non-core assets while retaining key properties
  • Expected announcement of six new resources by mid-2025 indicates strong pipeline
Negative
  • Gives up 1% NSR royalty on regional exploration properties
  • Transaction completion dependent on EDCC raising $9 million financing

Highlights

  • Canada Nickel to receive $8 million in cash and 8.9 million shares and hold 62% interest in RoyaltyCo

TORONTO, March 18, 2025 /PRNewswire/ - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSX-V:CNC) (OTCQB: CNIKF) is pleased to announce the signing of a binding Letter of Intent (the "LOI") with Edmiston Drive Capital Corp. ("EDCC") on March 17, 2025 whereby a new royalty company ("RoyaltyCo") will be created to hold net smelter return ("NSR") royalties on all of Canada Nickel regional exploration properties in the Timmins Nickel District with the exception of Crawford and other targets (Kingsmill and Dargavel) located on the original Project 81 patents.

Subject to the satisfaction of applicable conditions precedent, Canada Nickel anticipates it will receive $8 million in cash and 8.9 million shares of EDCC to hold a 62% interest in EDCC upon closing.

Mark Selby, Canada Nickel's CEO, said: "We are very excited to work with EDCC toward the creation of a new royalty company which will hold NSR royalties of the Company's portfolio of properties in the Timmins Nickel District which, when combined, we expect to be among the world's largest nickel sulphide resources.  We have published resources on two of these properties and expect to announce a further six resources by mid-2025.  This transaction is just one further step in unlocking value while minimizing equity dilution for Canada Nickel shareholders.  This world scale portfolio is just the start for EDCC, which will seek the acquisition or creation of new royalties and streams that align with its low carbon and low environmental footprint objectives."

RoyaltyCo Formation and Transaction Details

Canada Nickel will grant 1% NSR royalty interests in the subject properties to RoyaltyCo, which will then (subject to the satisfaction of closing conditions) amalgamate with a wholly owned subsidiary of EDCC in exchange for C$ 8 million in cash and 8.9 million common shares of EDCC.  One such closing condition is the completion by EDCC of a financing whereby $9 million will be raised through the issuance of a combination of common and preferred shares.  The proceeds of such financing will be used for the closing payment to Canada Nickel and for general corporate purposes. After giving effect to the financing, Canada Nickel expects that its equity interest in EDCC will be approximately 62%.  EDCC is a reporting issuer in Ontario, British Columbia, and Alberta, which may allow for a more straightforward listing, if and when EDCC determines that a stock exchange listing is in the best interest of its shareholders. 

The terms of the LOI are binding subject to the satisfaction of certain closing conditions.

The board of directors of EDCC, following completion of the transaction, shall consist of one director appointed by the current directors of EDCC, two directors appointed by Canada Nickel, and two independent directors.

The transaction is expected to close by April 30, 2025 and, among other approvals, is subject to any required approvals of the TSX Venture Exchange (the "TSXV").

About Canada Nickel

Canada Nickel Company Inc. is advancing the next generation of nickel-sulphide projects to deliver nickel required to feed the high growth electric vehicle and stainless-steel markets. Canada Nickel Company has applied in multiple jurisdictions to trademark the terms NetZero Nickel™, NetZero Cobalt™, NetZero Iron™ and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel provides investors with leverage to nickel in low political risk jurisdictions. Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp. For more information, please visit www.canadanickel.com

About EDCC

EDCC was incorporated under the laws of British Columbia in July of 2022 for the purpose of making investments via mergers, takeover bids, or other transactions. EDCC is a "Reporting Issuer" in British Columbia and Ontario and is a "Public Company" as defined in the Income Tax Act (Canada). EDCC's sponsor and largest shareholder is Copland Road Capital Corp. ("CRCC"), a corporation continued under the laws of British Columbia whose shares are listed on the Canadian Securities Exchange under the ticker symbol "CRCC".

For further information, please contact:

Mark Selby, CEO
Phone: 647-256-1954
Email: info@canadanickel.com

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward looking information in this news release includes, but is not limited to: the use of proceeds of the Offering; the timing and ability of the Company, if at all, to obtain final approval of the Offering from the TSX Venture Exchange; the tax treatment of the FT Shares; the timing of incurring the Qualifying Expenditures and the renunciation of the Qualifying Expenditures; upgrading existing mineral resources; publishing new mineral resources on additional properties, including the timing thereof; and statements regarding exploration results, exploration plans and other corporate and technical objectives. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: future prices and the supply of metals, the future demand for metals, the results of drilling, inability to raise the money necessary to incur the expenditures required to retain and advance the Company's properties, environmental liabilities (known and unknown), general business, economic, competitive, political and social uncertainties, results of exploration programs, risks of the mining industry, delays in obtaining governmental approvals, and failure to obtain regulatory or shareholder approvals. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. 3 Accordingly, readers should not place undue reliance on forward-looking information. All forward looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Canada Nickel disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/canada-nickel-announces-formation-and-partial-sale-of-royaltyco-subsidiary-302404302.html

SOURCE Canada Nickel Company Inc.

FAQ

What assets will the new RoyaltyCo hold from Canada Nickel (CNIKF)?

RoyaltyCo will hold 1% NSR royalties on Canada Nickel's regional exploration properties in the Timmins Nickel District, excluding Crawford and other targets (Kingsmill and Dargavel) located on the original Project 81 patents.

How much cash and shares will Canada Nickel (CNIKF) receive from the RoyaltyCo transaction?

Canada Nickel will receive $8 million in cash and 8.9 million shares of EDCC, maintaining a 62% interest in EDCC upon closing.

When is the Canada Nickel (CNIKF) RoyaltyCo transaction expected to close?

The transaction is expected to close by April 30, 2025, subject to TSX Venture Exchange approval.

How many new resources does Canada Nickel (CNIKF) expect to announce by mid-2025?

Canada Nickel expects to announce six new resources by mid-2025, in addition to the two properties where resources have already been published.
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