CNC & NOB BEST PART OF THE MEAT & POTATOES ON THE NEWSWIRE ExploreCo Subsidiary Formation and Consolidation Transaction
Per the prior news release on July 8, 2024, Canada Nickel and Noble have now entered into a definitive agreement whereby Canada Nickel and Noble will contribute certain mining properties, including the existing Mann joint venture, into a new private company ("ExploreCo") to consolidate their respective interests in the portfolio of nickel projects northeast of Timmins, Ontario. As part of the transaction, Canada Nickel will consolidate ownership of the mining rights and access to the surface rights for certain key patents in Aubin, Crawford, Carnegie, Dargavel, Kidd, Lennox, Lucas, Nesbitt, Prosser, and Wark townships currently held by Noble, which facilitates and simplifies future development of Crawford and other nearby regional properties held by Canada Nickel.
The transaction and formal formation of ExploreCo is expected to close by January 31, 2025 and is subject to any required approvals of the TSX Venture Exchange (the "TSXV").
Surface Rights Transaction
Canada Nickel has entered into a definitive agreement with the Surface Rights Holder (the "Surface Rights Transaction") for an option to acquire 32,000 acres of surface rights in Crawford and surrounding townships. As part of the transaction, Canada Nickel has agreed to issue 5.5 million shares and will transfer mining rights (not required for any exploration target) to approximately 47,750 acres in Kingsmill and Mabee townships. The Surface Rights Transaction is subject to the approval of the TSXV. Additional consideration will be paid to exercise the option on a construction decision. The Company has the right to exercise the option by December 31, 2026 and can extend the option annually up to a further five years for an additional payment for each extension. The Surface Rights Holder has asked that all other terms remain confidential. The additional consideration to acquire the surface rights is not material in the context of the overall Crawford project capital cost and the extension payment is also not material