Glencore’s stake in Stillwater could be increased to 15.87%. Credit: Zac Edmonds on Unsplash.

Glencore Canada has signed a definitive agreement for a strategic equity investment in Canadian mineral exploration company Stillwater Critical Minerals to help advance the latter’s portfolio of nickel exploration and development projects in North America.

Under the private placement agreement, Glencore will purchase C$4.94m ($3.74m) worth of Stillwater units, with each unit priced at C$0.25. Each unit will comprise one common share and 0.70 of a common share purchase warrant.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Upon completion of the private placement, Glencore will own a 9.99% equity interest in Stillwater on a non-diluted basis.

In a press statement, Stillwater Critical Minerals said: “Each full warrant shall entitle Glencore to purchase one common share at an exercise price of $0.375, providing up to approximately $5.2m additional funding, if exercised in full.”

If the warrants are fully exercised, Glencore’s stake in Stillwater will be increased to 15.87%.

Proceeds from the non-brokered private placement financing will be used by Stillwater Critical Minerals to fund its exploration and development activities at its nickel projects in North America, as well as for working capital and general and administrative expenses.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Stillwater Critical Minerals president and CEO Michael Rowley said: “This represents a major step forward for Stillwater as we advance our flagship Stillwater West project with the vision of becoming a large-scale source of battery and precious minerals that are now listed as critical in the US, and elsewhere.

“There are very few projects globally, and specially located within the United States, that offer the combination of grade and scale in a producing district that we see at Stillwater West.”

Located in Montana’s Stillwater district, the Stillwater West project is said to be one of the world’s largest and highest-grade platinum group elements-nickel-copper regions.

The company plans to carry out a 2023 drill campaign, which will focus on expanding the high-grade nickel-copper sulphides discovered in its past campaigns.