Canada Nickel Announces US$32 Million Bridge Loan Facility with Auramet International, Inc.
Bridge Loan Lifeline Secures Near-Term Engineering While $2 Billion Construction Funding Gap Remains
The most recent news release (February 6, 2026) announces a US$32 million bridge loan facility with Auramet International, Inc. The primary purpose of this debt is to repay an existing loan with Ber Tov Capital Corporation and to provide working capital to advance the Crawford Nickel Sulphide Project. CEO Mark Selby noted that this funding is intended to carry the company toward a construction decision by year-end 2026. This follows the January 26, 2026, announcement of awarding the lead engineering contract for the process plant to Ausenco.
The impact of the US$32 million facility is material and positive for immediate survival, though it underscores a precarious "debt-on-debt" cycle. - Liquidity Lifeline: The company had a working capital deficit as of July 2025 and April 2025. This loan prevents a liquidity crunch and allows detailed engineering to proceed. - Cost of Capital: Previous bridge loans with Auramet (April 2025) carried interest rates of 1.25% per month (15% APR) plus extension fees. While the current terms are not fully disclosed, bridge debt is an expensive substitute for permanent project financing. - Project Momentum: The loan aligns with the recent Ausenco contract and the project's inclusion in Ontario’s "One Project, One Process" framework. It validates that lenders are still willing to back the project despite the massive C$2 billion initial capital requirement identified in the March 2025 FEED study. - Execution Risk: The news confirms the company is doubling down on the 2026 construction start target. However, it does not solve the long-term financing hurdle; it merely buys time to find a strategic or government partner.
Canada Nickel Company is focused on developing the Timmins Nickel District in Ontario. Its flagship is the Crawford Nickel Sulphide Project. - Crawford Project: One of the world's largest nickel sulphide resources. A 2025 FEED study estimated an after-tax NPV (8%) of $2.8 billion and an IRR of 17.6%. - Differentiation: The project utilizes a proprietary "In-Process Tailings" (IPT) carbonation process, aiming for net-zero nickel production. It has been designated a priority "nation-building" project by both provincial and federal governments.