Proactive Investors - Canada Nickel Company Inc (TSX-V:CNC, OTCQX:CNIKF) shares rose early Friday after it announced Samsung (KS:005930) SDI is investing US$18.5 million for an 8.7% stake in the company.
Samsung SDI, a manufacturer of rechargeable batteries for the IT industry, automobiles, and energy storage systems, will buy roughly 15.6 million of Canada Nickel’s shares at C$1.57 each, the company said in a statement.
At closing, which is targeted for the end of January, the company said it would also grant Samsung the option to acquire a 10% equity interest in its Crawford Nickel-Cobalt Project for an additional US$100.5 million, contingent upon a final construction decision. If exercised, Samsung would gain rights to a portion of the project's nickel-cobalt production over the mine's lifespan, with an option to extend the agreement.
"We are very pleased to welcome Samsung SDI as an investor and project partner with Canada Nickel,” Canada Nickel CEO Mark Selby commented.
"As we advance the Crawford Nickel Sulphide Project, it is critical to form long-term partnerships with companies that truly understand how crucial this production is for electric vehicle supply chains across North America and Europe.”
As one of the world's leading electric vehicle battery manufacturers, Canada Nickel noted that Samsung SDI not only understands its vital role in these supply chains, but also believes in the company’s vision for responsible, large-scale, net-zero carbon nickel production.
"We look forward to working with Canada Nickel to contribute to the growing battery manufacturing industry through this partnership,” said Samsung SDI executive vice president Ikhyeon Kim.
Canada Nickel’s shares were 5.1% higher at C$1.66 shortly before noon in Toronto.