First Nation invests $20 million into Canada Nickel project

Bruce Archibald is understandably pleased with a game-changing deal that his First Nation in Northern Ontario has signed.

Archibald is the chief of Taykwa Tagamou Nation (TTN).

On Dec. 16 it was announced that TTN is investing $20 million into Canada Nickel’s Crawford Nickel Sulphide Project. The investment means the First Nation will have an 8.4 per cent ownership of the project.

This is believed to be the largest direct investment into a critical minerals mining project in the country by a First Nation.

“It’s going to be one of the bigger nickel mines in Canada,” Archibald said. “So, we wanted to make sure that we were able to be at that table to make decisions in regard to the environment and the procurement opportunities for First Nations that are going to be involved in this project.”

The Crawford project is expected to become one of Canada’s largest permanent carbon storage facilities. During its peak production period it is expected to store 1.5 million tonnes of CO2 annually.

Archibald said reps from his First Nation have had discussions with Canada Nickel officials regarding this project for several years.

“We’ve been taking to Canada Nickel probably since 2019 and working out some kind of arrangement of services that we can provide to the project, such as transmission and the heavy equipment fleet,” he said. “But at the same time, we were negotiating a mutual support agreement.”

Those negotiations involved TTN getting equity into the company. Archibald said his First Nation was keen to invest enough money to get a board seat.

“And finally, after years of talking, I felt that it’s time that we look at investing and I think at this point of the project it was perfect time to do it,” he said.

TTN’s investment guarantees the First Nation has the right to nominate one individual to Canada Nickel’s board of directors.

Archibald believes his First Nation will reap numerous benefits from the project.

“I think it’s going to mean a lot to the First Nation just because we’re now able to participate like we’ve always wanted to participate in any kind of major project in our area or in our territory,” he said. “In the past we were never given these opportunities or options to be able to actually be part of the decision-making when it comes to a project such as this and such as this size.”

Archibald believes a handful of other nearby First Nations will also have spinoff benefits from the deal.

TTN has had other noteworthy partnerships in the past.

“We’re very involved in the hydro sector,” Archibald said. “But I think this is going to be a big one for the community in the near future.”

Mark Selby, the CEO of Canada Nickel, also praised the partnership.

“This transaction demonstrates what is possible when industry and First Nations work together towards a common goal,” he said. “TTN's leadership and vision have been instrumental in shaping this partnership. We are excited to welcome TTN as true partners in our journey to deliver critical minerals for the clean energy transition.”

Archibald also spoke highly of Selby and Canada Nickel.

“We grew a respectful, meaningful relationship over the last five years,” Archibald said. “And I think that played a big role in why we wanted to invest into his company because he respects the communities when it comes to Indigenous involvement. And over the years we got to build a strong relationship and build trust. And I think trust is something that is very important when you’re looking at investing into a company.”

Archibald is also excited about what the initiative will become.

“This project is going to be a net zero carbon project,” he said. “And we wanted to be a part of that and be a part of providing that clean nickel to the market so we could start looking at the climate change strategy that Canada has to help become carbon neutral in the future.”

Though details of the transaction have been announced, it is not expected to be finalized until some point in January.

Archibald said TTN is finalizing details of its financing.

“We’re just waiting on the company that we’re borrowing the money from,” he said. “We’re just trying to get our ducks in a row here. But we’ve already made an initial payment of $1 million. So, we’re committed and we’re going to move forward once we get everything all lined up.”