Canada Nickel Company ( (TSE:CNC) ) has shared an announcement.
Canada Nickel Company has announced the formation of a new subsidiary, RoyaltyCo, in partnership with Edmiston Drive Capital Corp. (EDCC). This new entity will hold net smelter return royalties on Canada Nickel’s regional exploration properties in the Timmins Nickel District, excluding certain projects. The transaction, which involves Canada Nickel receiving $8 million in cash and 8.9 million shares of EDCC, is expected to close by April 30, 2025. This move is part of Canada Nickel’s strategy to unlock value while minimizing equity dilution for its shareholders, and it positions the company to potentially become one of the world’s largest nickel sulphide resource holders. The board of the new entity will include directors from both companies and independent members, and the transaction is subject to regulatory approvals.
More about Canada Nickel Company
Canada Nickel Company Inc. is focused on advancing nickel-sulphide projects to supply nickel for the growing electric vehicle and stainless-steel markets. The company is working on developing processes for producing net zero carbon nickel, cobalt, and iron products, and is anchored by its Crawford Nickel-Cobalt Sulphide Project in the Timmins-Cochrane mining camp.
YTD Price Performance: 20.31%
Average Trading Volume: 19,969
Technical Sentiment Consensus Rating: Hold
Current Market Cap: $143.4M
Learn more about CNC stock on TipRanks’ Stock Analysis page.