Toronto-based miners Canada Nickel Company say they could be on the cusp of securing an investment of as much as $670 million from Export Development Canada.

If the loan goes ahead, the company intends to use the project to help finance construction of its Crawford nickel mine project, which is located near Timmins.

In a release late week, the company says it has received a signed letter of interest from EDC to provide long-term debt financing for the project.

CEO Mark Selby called the development “an important milestone towards securing a full financing package for Crawford.”

“We look forward to working closely with EDC to complete the due diligence and negotiation process to secure this funding,” he said. “The LOI, along with the refundable critical minerals and carbon capture & storage tax credits in excess of US$600 million that the company expects to qualify for the initial phase of Crawford’s development, demonstrates the significant commitment of the federal government to support this critical project as a high priority.”

Canada Nickel wants to start mining by 2027. It hopes to obtain the last government permits in next year to start construction work.

If the project gets the green light, Crawford would be a low-grade nickel operation providing massive tonnages on a large property package in the Timmins area that could spawn more mines. Its target market is signing agreements with manufacturers in the North American electric vehicle supply chain.

A recent feasibility study suggests the Crawford mine could be Canada’s largest nickel sulphide mine.