07:38 AM EST, 12/16/2024 (MT Newswires) -- Canada Nickel ( CNIKF ) on Monday said Taykwa Tagamou Nation, a Cree and Ojibway community in Northern Ontario, will invest $20 million at closing of capital in a note convertible into 16.67 million Canada Nickel ( CNIKF ) common shares at $1.20, representing an 8.4% interest in the company.

The convertible note was signed on Dec. 13 and the completion is expected in January.

"By utilizing our own capital to secure a significant stake in Canada Nickel ( CNIKF ), we're ensuring we have a true seat at the decision-making table. This collaboration paves the way for future generations to thrive while maintaining our commitment to environmental stewardship and community well-being. We are proud to be setting a new standard for First Nation partnership in the mining sector," said TTN Chief Bruce Archibald. "It demonstrates how mutual respect can drive meaningful change and lasting benefits for both proponents and impacted First Nations."

Canada Nickel ( CNIKF ) said TTN has agreed to provide a $1 million deposit on signing and will also have a right to one seat on the company's board for so long as it holds the note or, after conversion, at least 5% of the company's shares.

"As we advance our flagship Crawford Project towards a construction decision, we also plan to unlock the potential of the Timmins Nickel District together by completing eight resources by mid-2025, building a future that benefits both the environment and future generations," said Canada Nickel ( CNIKF ) Chief Executive, Mark Selby.

The $20 million secured convertible note will have a five-year term and pay a 4.75% coupon per annum paid quarterly before conversion, the company added.

Shares of the company closed up $0.02 or 2%, to $0.94 on Friday on the TSX Venture Exchange.