The companies will continue good faith negotiations towards a binding agreement if the study delivers a positive outcome for both. Credit: Dennis Crabtree.

Canada Nickel Company and Glencore Canada have signed a non-binding memorandum of understanding (MOU) for potential use of the latter’s Kidd concentrator and metallurgical site (Met Site) in Timmins, Ontario.

Under the terms of the non-exclusive MOU, Canada Nickel will examine the Met Site for the treatment and processing of material mined from its wholly-owned Crawford Nickel-Cobalt Sulphide project.

Canada Nickel chair and CEO Mark Selby said: “The opportunity to utilise the excess capacity and existing infrastructure at the Kidd Met Site provides the potential to allow a faster, simpler, smaller scale start-up of Crawford at a vastly lower capital cost while the company continues to permit and develop the much larger scale project currently being contemplated.

“Given the potential for this significant change in the scope of the project start-up, the release of the Preliminary Economic Assessment (PEA) will be delayed until the end of March 2021 to allow this option, if successful, to be incorporated.”

After completing an initial high-level assessment, Canada Nickel will now perform a detailed study on the potential for upgrading excess capacity at the Kidd Concentrator.

The companies will continue good faith negotiations towards a binding agreement if the study delivers a positive outcome for both.

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The study is expected to be completed by the end of March this year.

Ausenco Engineering Canada will support the assessment of the Kidd Met Site facilities. The company is currently retained as the lead study consultant for the Crawford Preliminary Economic Assessment that is underway.

Glencore Canada operates the Kidd Operations comprising the Kidd Metallurgical Site and the Kidd Mine.

The concentrator was built in 1966 with numerous upgrades over the years and currently processes metal ore to produce copper and zinc concentrates.