Abitibi gold miner diversifies with ownership stake in Canada Nickel
Agnico Eagle, a major Canadian gold producer in the Abitibi region of Ontario and Quebec, is taking an ownership stake in Canada Nickel and its nickel-cobalt prospects around Timmins.
The Toronto gold company announced Dec. 29 that it’s acquired 19,600,000 flow-through units of Canada Nickel Company at a price of $1.77 per unit amounting to $34.7 million. Each unit is comprised of one common share of Canada Nickel. The purchase amounts to 12 per cent of the issued and outstanding shares.
Canada Nickel’s flagship deposit is its Crawford nickel-cobalt sulphide project, north of Timmins. It’s shaping up to be a low-grade but large tonnage open-pit operation with a 40-year-plus mine life. Prior to this investment, Agnico Eagle didn’t own any common shares of Canada Nickel.
In explaining its segue into nickel, Agnico said in a news release that it’s spent the last two years evaluating the critical minerals scene, focusing on opportunities close to its neighbourhood in the Abitibi where it runs gold mines in the Kirkland Lake area, at Detour Lake north of Cochrane and western Quebec.
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