By Robb M. Stewart

Swiss mining and trading giant Glencore will buy an almost 10% stake in Stillwater Critical Minerals, providing the Canadian company with funds for exploration and development of its nickel projects.

Stillwater said Friday a wholly-owned subsidiary of Glencore has agreed to buy 19.8 million company units for a total of 4.9 million Canadian dollars ($3.8 million). The units comprise shares and warrants, which if fully exercised would provide up to about C$5.2 million in additional funding and would boost Glencore's interest in Stillwater to almost 16%.

Stillwater President and Chief Executive Michael Rowley said the private-placement financing from Glencore marks a major step for the company as it works to advance its flagship Stillwater West project in Montana that promises to become a large-scale source of battery and precious minerals that are listed as critical in the U.S. and elsewhere.

The investment comes after Glencore approached Canadian miner Teck Resources over buying its coal assets, an alternative to its proposal to buy all of Teck in a roughly $23 billion deal. Teck has rejected a full-blown merger with Glencore and said it was engaging the company about its latest proposal, one of several inquiries it had received about potential transactions for its coal business.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

June 23, 2023 08:21 ET (12:21 GMT)

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