Canada Nickel Company Inc. (TSXV: CNC) has signed a purchase and sale agreement for a previously announced transaction to acquire certain Properties from Noble Mineral Exploration Inc.
Pursuant to the agreement, Canada Nickel will acquire approximately 1,231 patented properties and single cell mining claims in Crawford, Lucas, Nesbitt, Aubin, Mahaffy, Kingsmill, Mabee, MacDiarmid, Dargavel and Bradburn Townships in Ontario. The Properties are all within Noble’s Project 81 land package.
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. 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.
For further information please visit: https://canadanickel.com/
