TORONTO, Nov. 16, 2021 /CNW/ - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQX: CNIKF) is pleased to announce that it has signed a purchase and sale agreement for the previously announced transaction to acquire certain Properties (as defined herein) from Noble Mineral Exploration Inc. ("Noble"). Pursuant to the agreement, Canada Nickel will acquire approximately 1,231 patented properties and single cell mining claims (the "Properties") in Crawford, Lucas, Nesbitt, Aubin, Mahaffy, Kingsmill, Mabee, MacDiarmid, Dargavel and Bradburn Townships. This transaction was previously announced by Canada Nickel in a news release on April 22, 2021. The Properties are all within Noble's Project 81 land package.
The transaction has received conditional approval from the TSX Venture Exchange (the "TSXV"), with completion being subject to final approval of the TSXV.
As previously announced, the transaction is designed to consolidate all of the key nickel targets within Noble's Project 81 land package such that they will be held by Canada Nickel, allowing Canada Nickel to both expand and consolidate the Crawford Project's overall footprint and allowing Noble to focus its exploration activities on gold/VMS targets in other areas of Project 81, as well as on other properties held by Noble.
The principal terms of the transaction are as follows:
- Noble will transfer ownership and title to the Properties to Canada Nickel.
- The Properties are organized in seven areas (the "Property Areas"). Noble will hold a 2% net smelter return royalty on approximately 720 claims in Mahaffy, MacDiarmid and Bradburn Townships. Those claims are located in three of the Property Areas, with that royalty being subject to a 50% buyback (which, if fully exercised, would reduce Noble's royalty to 1%). The exercise price for the buyback is $1.5 million per Property Area if exercised during the first year after closing, increasing to $2.5 million per Property Area if exercised during the second year after closing, and further increasing to $5 million per Property Area if exercised at any time thereafter. Noble will also continue to hold the existing right to acquire a royalty of between 0.25% and 0.875% on a small number of claims in MacDiarmid Township, having acquired that right when it acquired those claims earlier in 2021. The 250 patented properties that are included in the Properties to be sold to Canada Nickel in this transaction are not subject to a royalty held by Noble, but will remain subject to an existing royalty held by another party.
- Canada Nickel will issue 3.5 million common shares of Canada Nickel to Noble as payment under this transaction. Those shares will be subject to a four-month hold period.
About Canada Nickel
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 successfully registered and applied for trademarks in various jurisdictions for NetZero Nickel™, NetZero Cobalt™ and NetZero Iron™ 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. For more information, please visit www.canadanickel.com.
For further information, please contact:
Mark Selby, Chair and CEO
Phone: 647-256-1954
Email: info@canadanickel.com