Canada Nickel Company Inc. is pleased to announce that it has entered into a binding letter of intent with Noble Mineral Exploration (“Noble”) to acquire the properties previously optioned by the Company (the “Transaction”) plus additional claims held by Noble. Under the terms of the Transaction, the current option agreements with Noble will be terminated and Canada Nickel will acquire 100% of the optioned claims and other interests in return for 3.5 million of the Company’s common shares.
Mark Selby, Chair and CEO of Canada Nickel said, “Today’s announcement achieves several objectives for us. This acquisition provides us with 100% ownership of our five option properties, adds a sixth property, and allows us to both expand and consolidate Crawford’s overall footprint, which is an important step given the scale of the contemplated operation. This acquisition effectively consolidates all of the key nickel targets within Noble’s Project 81 land package allowing Noble to focus on the multiple gold/VMS targets in its remaining substantial land package. The transaction also provides Canada Nickel an ability to buyback a portion of the royalties that are available on certain properties.”
Mr. Selby continued, “The coming month will be one of the most exciting to date in our short company history. We will receive results from our drilling on the Crawford extensions as assay backlogs finally begin to clear, receive our first results from exploration targets at MacDiarmid, and finalize and release our PEA results in advance of a conference call on May 20th, 2021 at 10am EDT to discuss these results in more detail.”
Transaction Summary
Under the terms of the binding letter of intent Canada Nickel has agreed to issue 3.5 million of its common shares to Noble in return for:
The transaction is subject to completion of final documentation and approval from the TSX Venture Exchange.
Once the transaction is complete, Canada Nickel will own 100% of six additional properties – Crawford/Nesbitt/Aubin, Nesbitt North, Aubin/Mahaffy, Kingsmill/Aubin, MacDiarmid and Bradburn/Dargavel; all located in close proximity to the flagship 100% owned Crawford property north of Timmins, Ontario. Please refer to the diagram below. For reference, the press release dated July 13, 2020 provides technical overviews of the five original properties.
Bradburn/Dargavel target
The newest property in Bradburn and Dargavel townships includes 3,553.71 hectares of patents and 11,438.1 hectares of mining claims. The property hosts a series of very large ultramafic units striking east-west that have been mapped for a distance of 10 kilometres. These townships have been relatively unexplored, but historical drilling in the 1960’s by Inco Limited in Dargavel township encountered 590 feet of serpentinized peridotite in hole 25014 grading 0.24% nickel with local assays up to 0.40% nickel and 287 feet of serpentinized peridotite in hole 28479 (no assays reported).
Historical Drill Hole Orientation, Dargavel property, Ontario:
Hole ID |
Area |
Easting |
Northing |
Dip |
Azimuth |
Length |
25014 |
Dargavel |
459802 |
5432751 |
-45.0 |
5.0 |
458.8 |
28479 |
Dargavel |
455636 |
5434346 |
-50.0 |
180.0 |
385.7 |
Note – Data is in NAD-27 Datum, ZONE 17N Projection |
Cautionary Statement Concerning Historical Information
The historical information referenced in this press release is based primarily on drilling results reported by Inco Limited and Noble. The information has also been filed with the Ontario Government and is available on-line through the Mining Lands Administration System (MLAS) website. The company believes this information is relevant, as it was completed by reputable companies using industry standard drilling and sampling practices. The company or its “qualified person” (for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects) has reviewed the information to confirm it has been correctly reproduced from the public MLAS database but given the company’s and its qualified person’s inability to access the underlying data, the company or its qualified person has not done sufficient work to verify the historical information contained in this news release.
Qualified Person and Data Verification
Stephen J. Balch P.Geo. (ON), VP Exploration of Canada Nickel and a “qualified person” as such term is defined by National Instrument 43-101, has verified the data disclosed in this news release, and has otherwise reviewed and approved the technical information in this news release on behalf of Canada Nickel.
About Canada Nickel Company
Canada Nickel Company Inc. is advancing the next generation of nickel-cobalt sulphide projects to deliver nickel and cobalt required to feed the high growth electric vehicle and stainless steel markets. Canada Nickel Company has applied in multiple jurisdictions to trademark the terms NetZero NickelTM, NetZero CobaltTM, NetZero IronTM and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel provides investors with leverage to nickel and cobalt in low political risk jurisdictions.
Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp.