Canada Nickel Announces Bought Deal Private Placement for Gross Proceeds of C$12.0 Million

The most recent news, dated November 24, 2025, announces that Canada Nickel Company Inc. (CNC) has entered into a bought deal private placement agreement with Red Cloud Securities Inc. for aggregate gross proceeds of C$12.0 million. The offering consists of 10,000,000 units at a price of C$1.20 per unit. Each unit includes one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable at C$1.80 for a period of 36 months from the closing date.

The net proceeds from this financing are intended for the advancement of the company's flagship Crawford Nickel Sulphide Project, as well as for general working capital and corporate purposes. Mark Selby, CEO of Canada Nickel, stated that this funding will allow the company to ramp up activities while working with the Government of Canada's Major Projects Office to secure the larger financing necessary to achieve the previously announced goal of breaking ground and beginning construction on the Crawford project by the end of next year (2026).

This C$12.0 million private placement is a necessary and positive step for Canada Nickel. The company, being in the development stage of its multi-billion dollar Crawford project, consistently requires capital to fund exploration, engineering, permitting, and general corporate overhead.

Positive Impacts: * Capital Injection: The C$12.0 million provides a much-needed boost to the company's cash reserves and working capital. As of July 31, 2025, the company had C$7.37 million in cash and cash equivalents and a negative working capital of C$27.99 million. This financing will alleviate immediate liquidity pressures and fund ongoing pre-construction activities for the Crawford project. * Momentum for Crawford: The CEO explicitly links this funding to ramping up activities for the Crawford project, especially following the recent positive referral to the Major Projects Office by the Government of Canada (November 14, 2025). This referral is a significant regulatory milestone that should facilitate project-level financing and permitting, which the current placement aims to support. * Investor Confidence: A bought deal by an agent like Red Cloud Securities indicates some level of institutional confidence in the company's direction, despite the dilutive nature.

Negative/Dilutive Impacts: * Share Dilution: The issuance of 10,000,000 common shares will dilute existing shareholders. Assuming approximately 215.4 million shares outstanding as of July 31, 2025, this represents a dilution of about 4.6%. Further potential dilution exists from the 5,000,000 warrants at C$1.80. * Pricing: The unit price of C$1.20 is below the last closing price of C$1.30 (November 21, 2025) and significantly below the recent highs seen in mid-November (e.g., C$1.74 on November 13, 2025). This discount reflects the necessity of raising capital and potentially the market's assessment of risk and future value.

Overall, this financing is a routine but positive event that helps Canada Nickel continue advancing its large-scale project. It addresses a short-term capital need but does not fundamentally solve the long-term, multi-billion dollar financing challenge for Crawford. It keeps the project on track towards a construction decision by late 2026.

Canada Nickel Company Inc. (TSXV: CNC, OTCQX: CNIKF) is a Canadian mineral exploration and development company primarily focused on its flagship Crawford Nickel Sulphide Project. The company's goal is to become a leading global producer of high-grade, low-carbon nickel.

Flagship Project: Crawford Nickel Sulphide Project * Location: Located north of Timmins, Ontario, in the Timmins Nickel District, Canada. * Commodities: Primarily nickel, but also cobalt, palladium, platinum, chromium, and iron. * Stage: Currently in the feasibility stage, with the aim to reach a construction decision by the end of 2026. * Key Features & Differentiators: * Scale: Projected to be one of the world's largest nickel sulphide projects, with a potential mine life exceeding 40 years. * Carbon Sequestration: The company is developing and piloting its proprietary "in-process tailings (IPT) carbonation process," which aims to permanently store up to 1.5 million tonnes of CO2 annually within mine tailings, potentially making Crawford one of Canada's largest carbon storage facilities and a net-zero emission operation. This technology is foundational for a proposed zero-carbon industrial cluster in Northeastern Ontario. * Strategic Importance: The Crawford project has received significant recognition and support from both the Canadian (referred to the Major Projects Office) and Ontario governments (designated a "Critical Minerals Priority and Nation-Building Project"). * Indigenous Partnerships: Demonstrates strong relationships with Indigenous Nations, including a landmark C$20 million convertible note investment from Taykwa Tagamou Nation (TTN) for a significant equity stake and a board seat, as well as contracting agreements for infrastructure with other First Nations. * Economic Impact: An economic impact study projected C$70.2 billion in GDP contribution to Canada, C$16 billion in tax revenues, and over 1,000 jobs. * Project Economics (March 2025 update): After Front End Engineering Design (FEED) completion, the project has an NPV(8%) of C$2.8 billion (excluding CCUS credits) and an IRR of 17.6%. Initial capital cost is estimated at C$2 billion.

Regional Exploration: In addition to Crawford, Canada Nickel holds a large portfolio of properties in the Timmins Nickel District and has an aggressive regional exploration program. It aims to publish a total of nine mineral resource estimates for these regional properties by year-end 2025/mid-2025, demonstrating the district's broader potential. Currently, six resources have been published, with Midlothian, Bannockburn, Deloro, Nesbitt, Mann West, Mann Central, and Texmont showing promising results.