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Canada Nickel consolidates and expands land package, acquires 6th nickel target

Apr 22, 2021

“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," Mark Selby, Chair and CEO of Canada Nickel said.  "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.”

Canada Nickel Company Inc. has entered into a binding letter of intent with Noble Mineral Exploration to acquire the properties previously optioned by the company 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.
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).

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