January 5, 2023
Canada Nickel Company Ltd. (TSXV:CNC, BUY, C$4.55 target, Timothy Lee) announced plans to integrate carbon capture and storage into its ongoing feasibility study at its 100%-owned Crawford Ni sulphide project located in Timmins, ON. CNC had previously announced test results for carbon capture by tailings samples from Crawford (read more). This carbon capture occurs naturally, but the company has demonstrated methods of accelerating this process in its bench-scale tests. The carbon capture would be incorporated into the existing process stream and utilize equipment that is already used in mineral processing, to simplify and minimize capital and operating costs. This would allow Crawford to become eligible for the Canadian government’s carbon capture and storage refundable investment tax credits of 37.5%-60% from 2022-30 and 18.75%-30% from 2031-40, which was announced in the 2022 federal budget. The integrated feasibility study is now anticipated to be released in Q2/23 (was Q1/23). Permitting is also underway at Crawford (read more), with receipt of permits anticipated in mid-2025, followed by construction. While this results in a delay to the FS, we believe incorporating carbon capture is a positive decision for the company, as the benefits from tax credits are likely to have a positive impact on project economics. Read more
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Canada Nickel Company Inc. – TSXV:CNC – 1,2,3
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