Canada Nickel Co. Inc.

Canada Nickel Co. Inc. is a junior nickel development company headquartered in Toronto, Canada, operating primarily in Canada. The company's portfolio consists of 8 projects, comprising 1 development and 7 advanced exploration projects. Key assets include Crawford, Reid, and Deloro. The company's business model is centered on the exploration and discovery of sulphide assets to supply high-growth industrial markets, including electric vehicles and stainless steel. A key operational characteristic is the vertical integration strategy, evidenced by the formation of wholly-owned subsidiaries to develop downstream processing capabilities. These planned facilities are designed to treat concentrates from the company's own projects as well as third-party feeds, aiming to fill a critical link in North American supply chains. Technological advantage is pursued through the development of proprietary processes designed to produce net-zero carbon products. This includes a carbonation process for permanent CO2 sequestration, which has been successfully demonstrated in a 130-tonne mineral processing pilot plant program. The operational approach involves consolidating a district-scale portfolio of over 25 targets, creating potential for significant operational synergies and scalable, long-life production. This positions the enterprise to become a leader in the next generation of industrial material supply, differentiated by a large-scale, low-carbon footprint operational profile.

The organization's strategy is advancing on three parallel fronts: bringing its flagship asset to a construction decision by year-end 2025, demonstrating the potential of its extensive regional exploration portfolio, and completing feasibility studies for its downstream processing projects. Near-term priorities include finalizing the Front-End Engineering Design study and securing a complete project financing package, for which financial advisors have been retained for both debt and equity components. A significant exploration program, involving over 118,000 metres of drilling in 2024, underpins the objective of delivering 7 additional resource estimates by mid-2025 to unlock the value of its district-scale land holdings. The capital allocation approach combines strategic equity investments from major industry participants, flow-through share financing to fund exploration, and short-term debt facilities to maintain liquidity. Long-term market positioning focuses on establishing strategic partnerships with key end-users and becoming a significant supplier of low-carbon industrial materials for the green energy and electric vehicle sectors.

Executive leadership has been strengthened with specialized expertise to support strategic growth initiatives. A former director with over 35 years of senior-level nickel processing experience at companies including Inco Ltd. and Vale SA was appointed to lead the company's downstream processing subsidiary. To further support this downstream initiative, an Advisory Board was established, comprising industry experts with extensive backgrounds in the nickel, stainless, and alloy steel sectors. In October 2024, the Board of Directors was enhanced with the appointment of a new member possessing extensive senior management experience from Rio Tinto and BHP, alongside senior roles within the Canadian government. Governance frameworks are also evolving through strategic partnerships; a financing agreement with an Indigenous Nation partner includes a provision granting the Nation the right to appoint one member to the company's Board of Directors, contingent on maintaining certain ownership thresholds. This demonstrates a management philosophy that integrates deep operational experience with strategic governance and stakeholder collaboration to advance its projects.

The company's sustainability approach is fundamentally integrated with its core business strategy of producing net-zero carbon industrial materials. A central initiative is the advancement of a proprietary carbonation process designed for permanent CO2 storage, a technology that has been validated through a pilot plant program and selected for $3.4 million in funding from Natural Resources Canada. Engagement with Indigenous Nations is a cornerstone of the social strategy, characterized by early and frequent consultation, funding for independent traditional land use studies, and the incorporation of nation-specific chapters within the project's Impact Statement. The company is also advancing long-term benefit agreements with multiple First Nations. Environmental stewardship was marked by the submission of the Impact Statement for its main project and the establishment of Environmental and Socioeconomic Committees composed of local experts to guide planning. A definitive agreement to secure 32,000 acres of surface rights includes the transfer of 47,750 acres of non-core mining rights to facilitate sustainable forestry and wildlife habitat preservation. The company also published its 2023 Environmental, Social, and Governance Report, outlining its commitment to responsible practices.

The corporate structure has been actively managed through the formation of new entities and strategic partnerships to advance its district-scale ambitions. In February 2025, the company closed an agreement with Noble Mineral Exploration Inc. to form East Timmins Nickel Ltd., a new entity consolidating certain properties with an initial 80% ownership for the company and 20% for Noble. Several strategic investors have acquired significant equity positions, shaping the ownership landscape. As of December 2023, Agnico Eagle held approximately 12% of outstanding shares and secured an investor rights agreement. In February 2024, Samsung SDI acquired an 8.7% stake and was granted a right to purchase a 10% equity interest in the main project upon a construction decision, which includes offtake rights. In March 2023, Anglo American acquired a 9.9% interest, coupled with an offtake term sheet and a technology testing agreement. A planned $20 million convertible note investment from Taykwa Tagamou Nation would represent an 8.4% interest upon conversion. The company also operates through wholly-owned subsidiaries, including NetZero Metals Inc., which was incorporated in 2020 to develop downstream processing facilities.