Noble finalizes agreement to acquire additional areas in MacDiarmid and Loveland Townships from IEP

Noble Mineral Exploration Inc. has signed the final agreement with International Explorers and Prospectors Ltd to acquire the 39 mining claims in MacDiarmid and Loveland Townships. These mining claims were strategic to completely cover the geophysical anomaly identified by Airborne EM, Mag and Gravity Surveys recently completed on Noble’s contiguous mining claims in MacDiarmid and Jamieson Townships that have been optioned to Canada Nickel Company Inc.

While historic exploration data is available from the Ontario Government, much of it online, IEP has access to unpublished exploration data that will be of great value in exploring MacDiarmid and Loveland Townships. A Mineral Exploration Research Center-industry consortium project is currently acquiring high resolution audio magneto-telluric (AMT) data within parts of this area to better understand the 3D distribution of sulfide-bearing units.

Terms of the transaction are as follows:

• payment of $25,000 cash by Noble;

• issuance of 250,000 common shares of Noble;

• transfer of 100,000 common shares of CNC from Noble’s holdings; and

• the transfer of $500,000 of assessment credits to IEP at the request of IEP at any time up to December 31, 2021.

 

All 39 mining claims to be acquired are subject to a 0.25% net smelter returns royalty (the “First Nations Royalty”), and 4 of the mining claims to be acquired are also subject to a 2.0% net smelter returns royalty held by other parties (the “Existing Royalty”). Both the First Nations Royalty and the Existing Royalty will continue to apply. For the 35 mining claims that are not subject to the Exiting Royalty, a 1.75% net smelter returns royalty will be granted to IEP (the “IEP Royalty”). Noble will have a purchase right applicable to the Existing Royalty and IEP Royalty which, if exercised through a payment of $1,000,000, would vest in Noble 0.25% of the Existing Royalty (out of the total 2.0%) and 0.875% of the IEP Royalty (out of the total 1.75%).

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