TORONTO, April 22, 2021 /CNW/ - Canada Nickel Company Inc.
("Canada Nickel" or "the Company") (TSXV:
CNC) (OTCQB: CNIKF) 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:
- A 100% interest in the previously optioned claims (see press
releases dated July 13, 2020 and
April 9, 2021) plus additional
claims, including in respect of the prospective Bradburn/Dargavel
property.
- The right to re-purchase 1% (half) of the 2% royalty held by
Noble in respect of certain properties for a re-purchase price of
$1.5 million per property if
re-purchased during the one-year period after closing, increasing
to $2.5 million per property if
re-purchased during the second year after closing, and increasing
to $5 million per property if
re-purchased after such second year after closing.
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
(mE)
|
Northing
(mN)
|
Dip
(degrees)
|
Azimuth
(degrees)
|
Length
(metres)
|
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.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain information that may
constitute "forward-looking information" under applicable Canadian
securities legislation. Forward looking information includes, but
is not limited to, future exploration and development results,
completion of the acquisition and corporate and technical
objectives. Forward-looking information is necessarily based upon a
number of assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties, and other
factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward-looking information. Factors that could affect the outcome
include, among others: future prices and the supply of metals, the
future demand for metals, the results of drilling, inability to
raise the money necessary to incur the expenditures required to
retain and advance the property, environmental liabilities (known
and unknown), general business, economic, competitive, political
and social uncertainties, results of exploration programs, risks of
the mining industry, delays in obtaining governmental approvals,
failure to obtain regulatory or shareholder approvals, and the
impact of COVID-19 related disruptions in relation to the Company's
business operations including upon its employees, suppliers,
facilities and other stakeholders. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such information. Accordingly, readers should not place undue
reliance on forward-looking information. All forward-looking
information contained in this press release is given as of the date
hereof and is based upon the opinions and estimates of management
and information available to management as at the date hereof.
Canada Nickel disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
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SOURCE Canada Nickel Company Inc.