Xander Resources Acquires 50 Claims next to Canada Nickel’s MacDiarmid Project & 236 Claims West of Crawford Project

“We are thrilled to have acquired such a significant project at a time when the demand for nickel is increasing so dramatically,” said Deepak Varshney, CEO of the Company. “This project checks off all the boxes – a mining-friendly jurisdiction, easy year-round access, and a property with great geophysical targets at a stage of development where we can explore and unlock shareholder value”.

Xander Resources Ltd. has entered into an option agreement to acquire 100% interest in 286 mineral claims in Timmins.

The Property consists of two (2) separate mineral claim blocks and is located within the Timmins mining camp in Ontario, Canada, a highly prolific mining complex with over 100 hundred years of history well supported by major infrastructure including highways, rail, and relatively inexpensive hydroelectric power.

The “North Block” consists of 236 claims located approximately 21 kilometres west of Canada Nickel Company’s (CNC’s) Crawford Project (as shown in Figure 1 below) where CNC has completed a preliminary economic assessment only 20 months after the commencement of exploration drilling that indicates 25-year mine with an after-tax NPV 8% of 1.2 billion i . It is also situated southwest of Kingsmill, Mahaffy-Aubin, and Nesbitt North, properties acquired from Noble Mineral Exploration by Canada Nickel through option agreements earlier in 2021 ii .

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Figure 1 – Location of the “North Block” 

The “South Block” consists of 50 claims contiguous to Canada Nickel’s MacDiarmid Project (as shown in Figure 2 below) where in May 2021, Canada Nickel announced a secondary discovery through the identification of significant intersections of mineralized dunite similar to the average mineralization initially discovered at Crawford. Geophysical surveys reveal that the MacDiarmid target to be approximately 1.8 kilometres long indicating a structural footprint averaging 400 meters in width – 15% larger than Canada Nickel’s original Crawford’s Main Zone discovery iii .

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Figure 2 – Location of the “South Block” 

Historical work at the Property includes airborne geophysical survey work (Geotech’s Helicopter Borne VTEM) which has delineated a series of high-priority electromagnetic anomalies within the Property (often indicative of sulphide mineralization), and numerous major and minor structures, which require follow-up exploration and possibly drilling as shown in Figure 3 below. The Company’s plan over the coming months is to build on the geophysical work completed through further geophysical mapping and interpretation, sampling, and other techniques in order to launch a comprehensive drill program with the goal of completing a maiden resource at one or more areas.

Figure 3 – VTEM Conductors Identified on the “North Block” 

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Pursuant to the Agreement and in exchange for the option to purchase a 100% interest in the Property, the Company will pay the following remuneration to the Vendors:

• – 600,000 common shares (the “ Shares ”) of the Company at a deemed price to be determined as of the closing market price of the Company’s Shares on or before the closing date (the “ Closing Date ”)

  – $50,000 cash payable within 90 days of the Closing Date

  – 1,000,000 Shares to be issued at a deemed price to be determined within 90 days of the Closing Date

  – $50,000 cash payable within one year of the Closing Date

  – 1,000,000 Shares to be issued at a deemed price to be determined within one year of the Closing Date

  – 900,000 Shares to be issued at a deemed price to be determined within two years of the Closing Date

  – $50,000 cash payable within two years of the Closing Date

The Company has agreed to incur not less than $1,250,000 of qualified exploration expenditures, including 3,000 metres of diamond drilling on the Property within two (2) years of the Closing Date, of which not less than $500,000 and 1,500 meters of diamond drilling will be incurred within one (1) year following the Closing Date and of which not less than $120,000 ($95,000 North Block and $25,000 South Block) will be incurred within six months from the Closing Date.  The Company has also agreed to grant the Optionors a 3% net smelter returns royalty.

The Acquisition and transactions contemplated, including the issuance of the Shares, are subject to the final approval of the Exchange. The Shares will be subject to the applicable hold periods in accordance with securities laws in Canada and the Exchange policies.

 

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