Highlights
- Consolidation of the Canada Nickel-Noble joint venture in Mann
Township and other Canada Nickel exploration projects East of
Timmins into a single private
company owned 80% by Canada Nickel and 20% by Noble Mineral
Exploration.
- Consolidation of all Crawford and adjacent township mining and
surface rights facilitate and simplify acquisition of the required
surface rights required to begin construction of the Crawford
Nickel Sulphide Project.
TORONTO, July 8, 2024
/CNW/ - Canada Nickel Company Inc. ("Canada
Nickel" or the "Company") (TSXV: CNC) (OTCQX:
CNIKF) is pleased to announce that it has signed a binding
letter of Intent (the "LOI") with Noble Mineral Exploration Inc.
("Noble") dated July 5th,
2024 whereby Canada Nickel and Noble will contribute certain mining
properties, including the existing Mann joint venture, into a new
private company ("ExploreCo") to consolidate their respective
interests in the portfolio of nickel projects northeast of
Timmins, Ontario.
As part of the transaction, Canada Nickel will consolidate
ownership of the mining rights and access to the surface rights for
certain key patents in Aubin, Crawford, Carnegie, Dargavel, Kidd,
Lennox, Lucas, Nesbitt, Prosser,
and Wark townships currently held by Noble, which facilitates and
simplifies future development of Crawford and other nearby regional
properties held by Canada Nickel.
Mark Selby, CEO of Canada Nickel,
commented: "Today is the first of a set of transactions designed to
unlock value from our significant asset portfolio. The creation of
ExploreCo will facilitate the ability to realize the future value
of these properties that are not currently recognized in
Canada Nickel's market value. This
transaction also allows the Company to consolidate the surface
rights, remaining claims, and patents around the Crawford Nickel
Sulphide Project to simplify the development of Crawford and our
future projects."
Overview of ExploreCo
ExploreCo, the name of which will be announced in due
course, will be led by Canada Nickel's current Vice President of
Exploration, Steve Balch.
Canada Nickel will also continue to operate and provide
administrative and technical support to ExploreCo. Noble will
have the right to nominate one director to the Board of Directors
of ExploreCo, Canada Nickel will have the right to appoint 2
directors, and 2 directors will be mutually agreed. ExploreCo may
seek to become publicly listed if market conditions permit.
ExploreCo will control 1,989 mining claims totaling
approximately 42,000 hectares and will include nickel properties in
Mann, Newmarket, and Reaume
Townships as well as Calder,
Galna, McCool, Moody, Mortimer, Stimson, and other properties
currently held by Canada Nickel (see Figure 1).
The first $5 million of funding
for ExploreCo will be provided from existing funds by Canada
Nickel, after which costs will be funded by pro rata ownership,
which will initially be 80% Canada Nickel and 20% Noble. Canada
Nickel and Noble will continue to maintain their existing royalty
rights on the ExploreCo claims, as will previous claim owners who
had vended claims to Noble.
Consolidation of Crawford Region Mining & Surface
Rights
As part of the transaction, Noble will also transfer 832 mining
claims and 291 mining patents to Canada Nickel in Calder, Duff,
Jamieson, Jessop, and MacDiarmid
townships. Noble retains certain exploration rights for non-nickel
opportunities subject to Canada Nickel approval on the properties
that it previously owned in Carnegie, Prosser, Kidd, and Wark
townships. Canada Nickel will also issue 162,000 common shares to
Noble to be utilized to consolidate ownership of a set of
properties which are currently owned by a third party.
The transactions under the LOI remain subject to the
parties negotiating a definitive agreement, as well as other
customary conditions and receipt of all regulatory and third party
approvals, including approval of the TSX Venture Exchange. As such,
Noble and Canada Nickel will announce further details as work on
the transaction proceeds.
Statement Regarding TSX Venture
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Qualified Person and Data Verification
Stephen J. Balch P.Geo. (ON), VP
Exploration of Canada Nickel and a "qualified person" as such term
is defined by National Instrument 43-101 – Standards of
Disclosure for Mineral Projects, has verified the data
disclosed in this news release, and has otherwise reviewed and
approved the technical information in this news release on behalf
of Canada Nickel Company Inc.
About Canada Nickel Company
Canada Nickel Company Inc. is advancing the next generation of
nickel-sulphide projects to deliver nickel required to feed
the high growth electric vehicle and stainless steel markets.
Canada Nickel Company has applied in multiple jurisdictions to
trademark the terms NetZero Nickel™, NetZero Cobalt™, 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 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
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, the completion of the transactions described
herein, the future development of the Crawford project and future
projects, the creation of value through the formation of ExploreCo,
information concerning ExploreCo, including the ability of
ExploreCo to become publicly listed in the future, the timing and
anility (if at all) to enter into a definitive agreement in respect
of the transactions described herein, receipt of all necessary
regulatory and third party approvals (including the approval of the
TSX Venture Exchange), the ability to satisfy all conditions to the
transactions, strategic plans, including future exploration and
development results, and corporate and technical objectives.
Forward-looking information is necessarily based upon several
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: the inability to negotiate and execute a
definitive agreement, the inability to receive all necessary
regulatory and third party approvals for the transactions, 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,
and failure to obtain regulatory or shareholder
approvals. 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
because of new information, future events or otherwise, except as
required by law.
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