08:35 AM EDT, 03/18/2025 (MT Newswires) -- Canada Nickel ( CNIKF ) on Tuesday said it created a new royalty company to hold net smelter return (NSR) royalties on most of its regional exploration properties in the Timmins Nickel district.

The company signed a binding letter of intent with Edmiston Drive Capital (EDCC) to create the new company called RoyaltyCo. Crawford and other targets (Kingsmill and Dargavel) located on the original Project 81 patents will not be included in RoyaltyCo.

Canada Nickel ( CNIKF ) will grant 1% NSR royalty interests in the subject properties to RoyaltyCo, which will then amalgamate with an EDCC subsidiary in exchange for $8 million in cash and 8.9 million common shares of EDCC.

EDCC will also have to raise $9 million through a combination of common and preferred shares. Proceeds will be used for the closing payment to Canada Nickel ( CNIKF ) and for general corporate purposes. Canada Nickel ( CNIKF ) expects to have a 62% stake in EDCC.

The transaction is expected to close by April 30.