Nickel mining stocks were boosted this week by positive reports on demand for the metal and a major deal that takes a Canada nickel mining company into uncharted territory.
Pure Nickel (TSXV: NIC) took a big step to diversifying its portfolio and focus this week in a deal that sees it become the majority developer of an Idaho gold project. In a complex all-share agreement with junior mining legend Eric Sprott that saw the company’s stock jump an initial 200% on the announcement, Pure Nickel will take the lead on developing the Neal Project and has options on a number of claims in the area.
Pure Nickel's President and CEO, R. David Russell, commented: "We are very pleased that Eric Sprott has agreed to allow Pure Nickel to become the operating partner in the Neal Project, while at the same time becoming a significant shareholder of the company. With the acquisition of a controlling and operating interest in the Neal Gold Project in Idaho, we believe we have made the first key strategic step for Pure Nickel to expand the company's focus to include gold and silver exploration and development."
Although the arrangement marks a diversification for the company away from being a nickel stock in the truest sense, other nickel mining companies continue to point to the upsides of their market. Fellow Canadian FPX Nickel (TSX-V:FPX) tweeted a link to a BMO report noting that China is switching its steel production to higher grade stainless, with a higher nickel content. Stainless steel continues to be the biggest market for nickel, although the lithium-ion batteries required by modern electric vehicles are adding their own considerable weight to global demand.
FPX also pointed to a Reuters news article stating that China's biggest maker of EV batteries has begun mass production of a high-nickel variant. The NCM 811 battery, which contains 80 percent nickel, 10 percent cobalt and 10 percent manganese, has a longer lifespan and allows electric vehicles to go further on a single charge.
Brian Leni of Junior Stock Review highlighted FPX as one of the best junior mining stocks currently available. He said: “If I were to pick a metal that I believe has a good chance of going up in price, it’s nickel. [...]
“[FPX is] the best bang for your buck in terms of nickel juniors out there. Current share price is at $0.12, and considering the metallurgical optimization on the project and a fantastic solution to their debt issue, there is deep value here.”
But it wasn’t only the nickel stocks hogging the limelight. Canadian uranium mining company NexGen Energy (TSX:NSE) announced that its Rook I project in the Athabasca Basin had seen its official description accepted by the Canadian Nuclear Safety Commission (CNSC) and the Saskatchewan Ministry of Environment. That clears the way for the company to begin the environmental assessment of the project.
NexGen chief executive Leigh Curyer said: "With over 5 years of detailed data on the project being collected, analysed, verified independently and working alongside local communities, the company is in a unique position to advance the next stage of this exciting project development optimally."
NexGen has also filed an initial licence application with the CNSC under the Nuclear Safety and Control Act in order to obtain a construction licence from the federal regulator of uranium mine and mill projects in Canada.