Vale completes Thompson deal with up to US$200M investment commitment
Exiro Nickel takes over operations while Vale Base Metals retains 18.9 per cent and a multi-year concentrate offtake agreement.
Mara Quinlan
Vale S.A. BVMFVALE3 NYSEVALE reported on Friday that its base-metals subsidiary completed the Thompson mine-complex transaction in Manitoba, including a commitment to invest up to US$200 million. The group retains an 18.9 per cent minority interest in the new owner while Exiro Nickel Company takes over day-to-day operations.
Shares NYSEVALE rose about 0.3 per cent to US$13.06 in New York at 4:00 p.m. EDT on Friday.
Exiro Minerals Corp., Orion Resource Partners LP and Canada Growth Fund Inc. collectively own 81.1 per cent of Exiro Nickel. Vale holds its minority interest through Vale Canada Limited.
Vale Base Metals also entered a multi-year offtake agreement for nickel concentrate produced at the Thompson mill. Friday's release says all customary regulatory and government authorizations have been received.
The US$200 million ceiling, equivalent to about C$280 million in Friday's release, is a commitment to invest in Thompson. The release does not give a disbursement timetable or state how much had been invested at closing.
The investment ceiling matches the amount in Vale's Feb. 19 agreement announcement, so Friday's release confirms completion without increasing the disclosed commitment.
Natural Resources Canada said on Friday that Canada Growth Fund's commitment is up to US$85 million within the broader package. Ottawa said the investment would support exploration and development and help maintain about 675 local jobs.
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The closing release does not specify the offtake's duration beyond calling it multi-year, or disclose concentrate volumes and pricing terms.
Friday's closing announcement does not disclose a cash purchase price, the division of historical environmental or closure liabilities, or any conditions attached to future funding draws.
Thompson produced 12,000 tonnes of Vale Base Metals' finished nickel in 2025, the subsidiary reported on Feb. 19. That was up from 9,900 tonnes in 2024.
The complex consists of two operating underground mines and a neighbouring mill, with exploration opportunities across a 135-kilometre belt. Friday's completion ends the strategic review Vale Base Metals launched in January 2025.
"We continue to believe in the strategic value of Canadian nickel and our retained interest and offtake agreement allow us to maintain that connection in Manitoba," Vale Base Metals chief executive Shaun Usmar said in Friday's release.
Vale owns 90 per cent of Vale Base Metals, with Manara Minerals Investment Company holding the balance. The retained Thompson interest and offtake agreement preserve the subsidiary's equity and concentrate exposure under the new operator.
Nickel's official cash offer on the London Metal Exchange was US$14,885 per tonne for Thursday.
Vale is scheduled to release its third-quarter results on Oct. 29 after market close.
