Canadian firm SPC Nickel and Vale Canada, a subsidiary of diversified miner Vale, have agreed to consolidate their adjacent and contiguous West Graham and Crean Hill 3 nickel and copper deposits in the Sudbury mining camp, located in Ontario, Canada.
The agreement grants SPC Nickel the right to acquire a 100% interest in the surface and mineral rights of the Crean Hill 3 Property.
In exchange, Vale will have certain rights and royalties across the combined project.
SPC CEO Grant Mourre said: “The signing of this agreement with Vale represents a transformative growth opportunity for SPC Nickel and its shareholders.
“The consolidated West Graham and Crean Hill 3 deposits gives SPC Nickel, as operator, the ability to optimise synergies during the exploration, development and production stages of the project.”
The West Graham and Crean Hill 3 deposits comprise the eastern and western contiguous portions of a large near-surface nickel-copper sulphide deposit at the Sudbury Igneous Complex’s base.
According to the agreed terms, SPC Nickel can earn a 100% interest in the Crean Hill 3 Property by delivering a feasibility study for the combined property to Vale by 30 June 2026.
SPC Nickel will also pay C$1m in cash to Vale at the feasibility study deadline.
Upon earning a 100% stake in the Crean Hill 3 Property, the Canadian firm will grant certain rights and royalties over the combined project to Vale.
Mourre said the Crean Hill 3 Property would allow SPC Nickel to significantly grow the West Graham Deposit into a high-quality nickel-copper asset in one of the world’s top nickel mining camps.
“Our recently completed drill programme at West Graham has provided the technical team with a firm understanding of the types of mineralisation we expect to define on the Crean Hill 3 Property and, more importantly, the controls on mineralisation that we expect to guide us to higher-grade opportunities across the combined Project,” Mourre added.