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
Cautionary Statement Concerning Forward-Looking
Statements:
This press release contains certain information that may
constitute "forward-looking information" under applicable Canadian
securities legislation. Forward looking information includes, but
is not limited to, future exploration and development results,
completion of the acquisition and corporate and technical
objectives. Forward-looking information is necessarily based upon a
number of assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties, and other
factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward-looking information. Factors that could affect the outcome
include, among others: future prices and the supply of metals, the
future demand for metals, the results of drilling, inability to
raise the money necessary to incur the expenditures required to
retain and advance the property, environmental liabilities (known
and unknown), general business, economic, competitive, political
and social uncertainties, results of exploration programs, risks of
the mining industry, delays in obtaining governmental approvals,
failure to obtain regulatory or shareholder approvals, and the
impact of COVID-19 related disruptions in relation to the Company's
business operations including upon its employees, suppliers,
facilities and other stakeholders. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such information. Accordingly, readers should not place undue
reliance on forward-looking information. All forward-looking
information contained in this press release is given as of the date
hereof and is based upon the opinions and estimates of management
and information available to management as at the date hereof.
Canada Nickel disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
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SOURCE Canada Nickel Company Inc.