Canada Nickel Company (TSXV: CNC) this morning delayed the scheduled release of its feasibility study for its flagship Crawford Project, found in Timmins, Ontario. The feasibility study, originally slated to be released by the end of Calendar 2022, is now to be released sometime in the second quarter of 2023.
The delay is being made under the guise of including carbon capture and storage into the Crawford project, which is to occur via what Canada Nickel calls “in-process tailings carbonation,” or IPT. Mark Selby, CEO of the company, commented that he believes the method of carbon capture “has the potential to be a case study in how critical minerals are developed in Ontario and Canada.”
The tech itself works as a result of the project being hosted in ultramafic rock, which through natural processes both absorbs and sequesters CO2. Effectively, the process Canada Nickel has developed consists of injecting concentrated CO2 into tailings during the milling process. The company envisions the collection of downstream CO2 from the processing of concentrates or other industrial processing activities, which will then be injected into the tailings. For extra green points, the company suggested this CO2 could also come from green hydrogen production or carbon capture facilities.
The company currently estimates that 37 tonnes of CO2 could be captured per tonne of nickel produced, which is expected to represent a “potential maximum.”
Digging in a little deeper, it appears that the effort is ultimately being undertaken for potential tax breaks. The company believes that the tech will potentially enable a portion of the capital expenditures of the project to be eligible for the carbon capture and storage refundable investment tax credit. For 2022 through to 2030, the firm estimates credits of 37.5% to 60%, and for 2031 through 2040, credits of 18.75% to 30% – figures that could dramatically change the economics of the project.
The delay in the release of the firms feasibility study is currently claimed to have no impact on the overall timeline to production. Canada Nickel currently estimates that permits for development will be received in mid-2025, with construction to follow immediately thereafter.
Last month, the company went as far as to appoint Deutsche Bank Securities and Scotiabank as financial advisors for the equity component of the project financing required to continue to advance the project. Further details on what that might entail were not yet provided. Applications have also been made with the Impact Assessment Agency of Canada in relation to receiving permits for the project.
Canada Nickel last traded at $1.93 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
