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First Atlantic Nickel Corp. (TSX-V: FAN | OTCQB: FANCF) may have made the largest nickel alloy and chromium discovery in the Atlantic region in 30 years at its Pipestone XL Nickel Alloy Project. The discovery contains awaruite, a rare natural alloy of nickel, cobalt, and iron that is 77% pure nickel—a geological rarity that could reshape North American critical mineral supply chains. What makes this discovery truly revolutionary is that unlike conventional nickel deposits, awaruite possesses natural magnetic properties that enable it to be concentrated using magnetic separators, allowing the company to completely bypass the smelter bottleneck controlled by China and Russia and enabling domestic magnetic processing without reliance on overseas facilities.
Located across a 30-kilometer district-scale system enriched in nickel, chromium, and cobalt, the Pipestone XL Nickel Alloy Project is strategically positioned in Newfoundland, a top 10 global mining jurisdiction with direct sea access to American and European manufacturing markets. The discovery includes valuable byproducts of cobalt, chromium, and iron, with additional potential for stimulated geologic hydrogen production. By leveraging the unique magnetic properties of awaruite, First Atlantic Nickel is positioned to establish a secure, Western-based supply chain of critical battery and manufacturing minerals, eliminating dependence on foreign-controlled smelting infrastructure and providing a domestic solution for North American mineral security.
America's only nickel mine — Eagle Mine — produced just 8,000 tons last year, representing only 0.22% of global production and just 4.4% of U.S. consumption, and could exhaust production in 2025, leaving the U.S. with no nickel industry. This ore must be exported since America has no smelters.
Global nickel demand to double to over 6 million tons by 2040
60 new nickel mines needed by 2030 per IEA and Fraser Institute
40X growth in EV battery nickel demand by 2040
140X surge for energy grid batteries and power for AI data centers
While America’s domestic capacity has declined, China has spent the past decade securing near-total control of global nickel supply. In 2012, Hong Kong Exchanges purchased the London Metal Exchange — the world’s main nickel trading hub — giving Beijing indirect influence over global pricing.
When Indonesia, the world’s top nickel producer, banned raw ore exports in 2020, China responded with $7.3 billion in direct Belt and Road investments and over $30 billion more through state-backed companies. Today, Chinese entities operate or finance 42 Indonesian smelters, processing nearly 60% of global nickel output.
"There is no adequate alternative supply of nickel produced outside of China or by non-Chinese companies."
With no domestic smelters and just one nickel mine nearing depletion, the U.S. now finds itself dangerously exposed — its aerospace, defense, and clean-energy sectors dependent on foreign processing that could be restricted at any time.
First Atlantic’s discovery changes everything.
First Atlantic has discovered Earth's highest-grade natural nickel alloy — awaruite, a naturally magnetic nickel-iron-cobalt alloy containing ~77% pure nickel. This unprecedented district-scale discovery spans across a 30km (18 miles) geological system enriched in nickel, chromium, and cobalt — critical since the U.S. hasn't mined chromium since 1962 despite USGS declaring "no substitute" for stainless steel.
Traditional sulfide ores require smelters that emit toxic emissions, consume massive amounts of electricity, and can create acid mine drainage — nearly impossible to permit or profit from in Western nations with high electricity prices.
Laterite ores need high-pressure acid leaching with massive chemical inputs. Environmental risks related to acid disposal and acid mine drainage from sulfide and laterite ores threaten water supplies and wildlife, creating permitting roadblocks.
But awaruite is sulfur-free and naturally magnetic. It processes through large-scale magnetic separator drums — the same proven technology employed in North American iron ore operations for over a century — producing 60% nickel concentrate, 4X higher than typical sulfide concentrates, without the emissions or acidic waste.
First Atlantic’s project in Newfoundland stands as a real-world embodiment of a statement made by the USGS:
"The development of awaruite deposits in other parts of Canada may help alleviate any prolonged shortage of nickel concentrate. Awaruite, a natural iron-nickel alloy, is much easier to concentrate than pentlandite, the principal sulfide of nickel."
Every drill hole to date has intersected awaruite mineralization — nickel, cobalt, and chromium — across multiple zones that remain open in all directions. Metallurgical tests confirm high magnetic recoverability, yielding premium nickel and chromium concentrates using established, low-impact North American processing methods:
RPM Zone: Already drilled 750m width x 800m length with intercepts up to 447 meters (1/4 mile), within the 30km potential target
Multiple Discovery Zones: RPM, Super Gulp, and historic Atlantic Lake across the 30km trend
Excellent Metallurgical Results: Confirm magnetic recoverability producing high-grade nickel and chromium concentrates
With district-scale potential across a 30km geological system, excellent infrastructure, and proximity to deepwater ports, First Atlantic is fast-tracking exploration to meet the surging demand for secure North American supply.
The company’s location in Newfoundland — ranked among the world’s top 10 mining jurisdictions — offers the rare combination of permitting efficiency, hydroelectric power, and direct shipping access to U.S. and European manufacturers.
Newfoundland’s last major nickel discovery — Voisey’s Bay — transformed the region, with its discovery sending shares of Diamond Fields Resources soaring 20-fold before Inco’s $4.3 billion acquisition.
Today, that same project supplies Tesla’s North American gigafactories under a long-term agreement. As Tesla expands its Nevada plant from 35 to 500 GWh capacity, its nickel requirements could exceed 375,000 tons per year — the equivalent of nine new average-sized mines.
The race to secure critical minerals is accelerating. The U.S. Department of Defense recently took a major equity stake in MP Materials, committing $400 million alongside a $500 million investment from Apple to ensure domestic rare earth processing.
First Atlantic Nickel (OTC: FANCF, TSXV: FAN) represents the same opportunity – but with nickel.
With its unique awaruite discovery, the company offers a scalable, onshore solution to one of America’s most urgent supply chain vulnerabilities.
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This communication has been prepared and distributed by First Atlantic Nickel Corp. and constitutes a paid promotional communication. It is provided for informational purposes only and does not constitute financial or investment advice, or a recommendation, offer, or solicitation to buy or sell any securities. No securities regulator or stock exchange has reviewed or accepts responsibility for its contents. Recipients should conduct their own research and consult qualified investment professionals before making any investment decisions. By reading this communication, you acknowledge and agree that neither First Atlantic Nickel Corp. nor any of its directors, officers, employees, agents, or promoters accepts any liability for any direct or consequential loss or damages arising from reliance on the information contained herein.