SPC Nickel cuts deal with Vale to combine nickel deposits in Sudbury basin
A Sudbury exploration outfit has taken a great leap forward toward establishing itself as the city’s next nickel miner. SPC Nickel has struck a “cooperation agreement” with mining giant Vale to consolidate ownership of two adjacent nickel and copper deposits —SPC’s undeveloped West Graham and Vale’s Crean Hill 3 — into an advanced exploration project.
The junior miner is calling the deal a “transformational growth opportunity” for a one-time private company that went public two years ago with the objective of becoming the next nickel mining player in the Sudbury camp.
The properties are situated 20 kilometres west of the city, between the Totten and Creighton mines at the southeast corner of the Sudbury basin. Two former mines, Lockerby and Crean Hill, are nearby.
The deal gives Vale an avenue to shed a valuable, but non-core, asset in Crean Hill 3 while giving a junior miner a shot at bringing the ground into production. Vale will realize some benefits down the road through a one per cent net smelter return and 37 per cent net profits royalty on any future profits generated by a potential mine on a quarterly basis. Vale also has the first right of refusal on ore feed into its Clarabelle mill.