Ontario-headquartered Exiro Nickel Company has closed its acquisition of Vale Base Metals‘ Thompson Operations, a deal that marks a new ownership structure for one of Canada’s major nickel complexes and for the Manitoba community of Thompson that depends on it.
The Thompson Operations include the T1, T3 and Pipe mines along with a concentrator. Exiro said it intends to responsibly increase the concentrator’s milling capacity to two million tonnes a year over a five-year period.
Exiro CEO Shastri Ramnath described the Thompson Operations as one of Canada’s great nickel operations, saying its strongest years may still be ahead. Ramnath pointed to the site’s geology, its workforce, and what the company views as untapped potential across the Thompson Nickel Belt. Ramnath said Exiro was established specifically for this opportunity and is committed to investing in the people, the mines, the operation and the exploration potential that will shape the belt’s future.
A Historic Nickel District
The Thompson Nickel Belt is regarded as the fourth-largest nickel district in the world, with more than 60 years of production history. The region has produced roughly 2.7 million tonnes of nickel to date.
Who Is Backing Exiro
Exiro’s acquisition was funded by a consortium that includes Orion Resource Partners, the Canada Growth Fund, Exiro Minerals Corporation and Vale Base Metals. Vale Base Metals retains an 18.9% ownership stake in Exiro along with a multi-year offtake agreement for nickel concentrate produced at the Thompson concentrator.
The Canada Growth Fund alone committed as much as $85 million toward the overall capitalization, which was described as reflecting federal confidence in the Thompson Nickel Belt as part of Canada’s domestic minerals supply chain. In total, Exiro will have as much as $200 million, or C$280 million, in new capital available to invest in the Thompson Operations.
Vale’s Rationale for the Sale
Vale said Vale Base Metals divested a majority stake in the Thompson Operations to optimize its global portfolio, strengthen the competitiveness of its nickel business, and free up dedicated capital aimed at reviving the aging mine site.
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