TORONTO, April 9, 2021 /CNW/ - Canada Nickel Company Inc.
("Canada Nickel" or "the Company") (TSXV: CNC)
(OTCQB: CNIKF) is pleased to announce that, further to the
Company's news release on February 17,
2021 (that Canada Nickel had entered into a binding letter
of intent with Noble Mineral Exploration ("Noble") to consolidate
ownership of certain claims in MacDiarmid and Loveland Townships (the
"Transaction")), Canada Nickel has now entered into a longer-form
option agreement with Noble, has received conditional approval from
the TSX Venture Exchange, and plans to close the Transaction as
soon as possible following the issuance of this news release.
The Transaction options 39 additional mineral claims (the
"Option") adjacent to the original MacDiarmid property option previously
announced on July 13, 2020. In
exchange for the Option, Canada Nickel has agreed to (i) issue
200,000 common shares of Canada Nickel to Noble, (ii) forgive the
$160,224 amount currently owed by
Noble to Canada Nickel, (iii) take all steps as are commercially
reasonable to transfer $500,000 in
assessment credits to Noble, and (vi) Noble will retain an NSR of
up to 1.75%. Under the terms of the Option, a 60% interest in the
claims will vest in Canada Nickel
provided Canada Nickel funds at least $100,000 of exploration and development
expenditures on the claims within 18 months. An 80% interest in the
claims will vest in Canada Nickel
provided Canada Nickel funds at least an additional $150,000 (for a total of $250,000) of exploration and development
expenditures on the claims within 36 months. Canada Nickel will
also be responsible for exploration expenditures and other costs
required to maintain the claims in good standing (and to make
certain related filings). If the conditions to earn a 60% interest
or 80% interest have been satisfied, a joint venture would be
formed between Canada Nickel and Noble on such proportionate
basis.
Issuance of Shares in Connection with Other Timmins Mining
Claims
The Company would also like to announce that it has (i) entered
into an option agreement to acquire certain patented mineral and
surface rights located in Timmins,
Ontario for consideration at completion of $75,000 in cash and 10,000 common shares (annual
option payments payable to maintain the option are $60,000 cash and 5,000 common shares on each
anniversary date until 2025; and in the event the Company elects to
acquire the property a final payment of $460,000 in cash and 5,000 common shares); and
(ii) an acquisition agreement to acquire certain concessions also
located in Timmins, Ontario for
consideration at completion of $120,000 in cash and 48,000 common shares. Any
shares issued under these arrangements will be subject to a four
month hold period under applicable securities laws.
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, 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.