Canada Nickel Announces Property Transactions

Canada Nickel Company Inc. has entered a Binding Letter of Intent to sell the Lucas Gold Project to Noble Mineral Exploration Inc. The consideration for the Lucas transaction consists of 5,000,000 units of Noble stock valued at $0.06 per unit, totaling $300,000 CAD. Each Noble unit contains one common share and one-half non-transferable warrant exercisable at $0.15 for two years.

Under the terms of the deal, Canada Nickel retains a "Back-in Right" to reacquire a 25% interest if Noble incurs $5M in exploration expenditures, enters a binding sale or change of control, or within 36 months.

Simultaneously, Canada Nickel acquired a 100% interest in mining claims within the Crawford Nickel Project footprint. The consideration for the Crawford claims includes 60,000 Canada Nickel common shares subject to a four-month hold period, plus the assumption of a 1.5% Net Smelter Return (NSR) royalty. A buy-down option is available to reduce the NSR to 0.75% for $500,000.

Both transactions are subject to definitive agreements, legal compliance, and TSX Venture Exchange approval.

Canada Nickel Company Inc. (CNC) received $300,000 CAD from the sale of the Lucas property, a figure that remains negligible against the company’s $14.2 million cash balance and the more than $2 billion capital expenditure requirement for its project. The company also issued 60,000 shares for the Crawford claims, a transaction that is dilutive but financially insignificant.

The move represents routine land consolidation, with the divestment of a non-core gold asset intended to fund and consolidate the core Crawford nickel footprint. This strategy aligns with management’s stated focus on the Timmins Nickel District, where the 1.5% net smelter return (NSR) assumption serves as a standard royalty structure for undeveloped claims.

The transaction is in line with historical patterns, as the company has been actively consolidating district-scale properties and monetizing non-core assets to preserve capital for Crawford. There were no surprises in the valuation or terms.

The deal does not alter the financing roadmap or permitting timeline. The company’s focus remains on securing the $600 million Investment Tax Credit (ITC) facility and achieving a Final Investment Decision (FID) in 2027.

Canada Nickel Company Inc. is a Canadian mining developer focused on the Timmins Nickel District in Ontario. Its flagship asset is the Crawford Nickel-Cobalt Sulphide Project, located approximately 42 km north of Timmins. The project has completed its Front-End Engineering Design (FEED) in 2025 and a Baseline Feasibility Study (BFS) in 2023. An Environmental Impact Statement has been filed, and the company is currently in the final stages of the federal impact assessment.

The project targets an average nickel production of 38,000 tonnes per annum (ktpa), with production peaking at 48 ktpa. The life-of-mine is estimated at 41 years, with first production targeted for 2029. The broader Timmins Nickel District hosts multiple satellite deposits, including Reid, Mann, Midlothian, Bannockburn, and Nesbitt, which total over 10.1 million tonnes of nickel in the Measured & Indicated category and 12.5 million tonnes in the Inferred category.

Canada Nickel Company Inc. is pursuing an aggressive decarbonization strategy aimed at becoming a net-zero carbon nickel mine. This strategy utilizes three pathways: In-Process Tailings (IPT) Carbonation, the NetCarb alliance, and in-situ CO2 injection in partnership with UT Austin and the DOE ARPA-E.