Agnico Eagle Mines has made a C$23.1 million ($17m) investment in the recent flow-through offering from Canada Nickel Company, acquiring 19.6 million units at a price of C$1.18 per unit. This gives Agnico a non-diluted equity interest in Canada Nickel of 12%, or 15.6% on a partially diluted basis.

Canada Nickel raised total proceeds of C$34.7 million in the entire unit offering.

Each unit consists of one flow-through share and 0.35 of one flow-through share purchase warrant. Each warrant entitles the holder to purchase an additional common share at a price of C$1.77 any time prior to Dec. 29, 2026, or the expiry date.

Agnico Eagle said it made the purchase for investment purposes.

Canada Nickel’s flagship project is the Crawford nickel sulphide deposit in Ontario, for which it released a feasibility study in October 2023. According top the new study, Crawford contains the world’s second largest nickel resources which total 2.46 billion tonnes at 0.24% nickel, containing 13.30 billion lb. of nickel.

Over an initial life of 41 years, the project will produce 3.54 billion lb. of nickel, 52.9 million lb. of cobalt, 490,000 oz. of palladium and platinum, 58 million tonnes of iron, and 6.2 million lb. of chromium.

The company said it will use its in-process tailings (IPT) method of carbonization to create an eco-friendly project. IPT involves injecting a concentrated source of CO2 into tailings in the mill. The carbon is geologically sequestered in the tails while they are in the processing circuit, rather than after.

“The proceeds from this offering will help us continue to unlock the potential of our Timmins nickel district, which we believe has the potential to be one of the world’s largest nickel sulphide district,” Canada Nickel CEO Mark Selby said in a news release.

“This potential, combined with our novel IPT carbonation process to capture and store CO2, provides a foundation for a zero-carbon industrial cluster in northern Ontario.”