Chairman and CEO of Canada Nickel, Mark Selby sat down to discuss the maiden resource update on the Crawford Nickel project and the recently announced acquisition of additional targets on the project 81 land package.
With a maiden resource of almost 1 billion tonnes of material, CNC is well on its way to having one of the largest nickel sulphide deposits in the world. Having the experience of developing the Dumont nickel project, Mark Selby is perfectly suited for this role and is laser focused on accelerating the process of discovery and development ahead of the next super cycle.
There has been plenty of interest from majors planning to capitalize on this super cycle and Mark believes he is positioned to meet the demands of the market.
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Canada Nickel Company Announces Additional Property Acquisition and Options
TORONTO, March 4, 2020 /CNW/ – Canada Nickel Company Inc. (TSX-V:CNC) (“Canada Nickel” or the “Company”) today announced the signing of a Memorandum of Agreement with Noble Mineral resources to acquire an additional property and enter into option agreements on 5 other targets near its 100% owned Crawford Nickel-Cobalt Sulphide Project (“Crawford”) near Timmins, Ontario.
“Given our demonstrated success at Crawford, this transaction provides us the larger footprint to fully develop Crawford, along with additional exploration targets which can potentially host nickel-cobalt deposits that are similar to Crawford.”
Mark Selby, Chair and CEO of Canada Nickel Corp
The Crawford Nickel-Cobalt Sulphide Project is located in the heart of the prolific Timmins-Cochrane mining camp in Ontario, Canada,
and is adjacent to well-established, major infrastructure associated
with over 100 years of regional mining activity. An initial resource
for the project was recently published (see Canada Nickel news release February 28, 2020)
Transaction Summary:
Canada Nickel has agreed to pay to Noble $500,000
in cash and issue 500,000 Canada Nickel common shares to acquire the
Crawford Annex property and the option to earn up to an 80% interest in 5
additional nickel targets within the Project 81 land package. The
Crawford Annex comprises 4,909 hectares in Crawford and Lucas township
and the 5 option areas (Crawford-Nesbitt-Aubin, Nesbitt North, Aubin-Mahaffy, Kingsmill-Aubin, and MacDiarmid) (“Option Properties”) range in size of 903 to 5,543 hectares. See Figure 1 for a map of property locations.
Canada Nickel can earn up to an 80% interest in each of the Option Properties on the following terms and conditions.
1) Canada Nickel can initially earn a 60% interest in each of the Option Properties within 2 years by:
– funding at least $500,000 of exploration and development expenditures on each option property; – paying all property maintenance costs for each option property, including all applicable mining land taxes – making a payment to Noble of an additional $250,000 in cash or, at Noble’s election, Canada Nickel common shares.
2) Canada Nickel has the right to then
increase their interest to 80% in each of the Option Properties within 3
years by funding an additional $1,000,000 of exploration and development expenditures on each option property (for a total of $1,500,000 per option property)
If the conditions to earn a 60% interest or 80% interest have been
satisfied, a joint venture would be formed on that basis and a 2% net
smelter return royalty would be granted to Noble on the portion of the
property which are mining claims and currently do not have any royalty
on them. (The overall result would be a total of 2% on each property)
Vance White, Chair and CEO of Noble
Minerals commented “This transaction continues our project generator
strategy to unlock the potential of our Project 81 holdings, which we
believe have potential for gold, VMS, and nickel deposits, through joint
ventures and other transactions. Given Canada Nickel’s success to date
and their nickel industry expertise, we are very happy to partner with
that team on these additional properties, and the additional equity that
we’d receive on this transaction would allow our shareholders to
potentially realize additional value on these properties as they are
explored. If Canada Nickel were to fully exercise all its rights and
options it could mean additional cash and/or shares to the Noble
treasury of up to $2 million and additional exploration expenditures over the term of the options.”
The transaction is subject to certain specific conditions, including
prior approval of the TSX Venture Exchange and third party approvals.
Grant of Restricted Share Units
The Company also announced today that it has issued a total of
1,987,500 restricted share units under its Restricted Share Unit Plan to
its directors, officers and other key employees and contractors (who
have agreed to receive RSUs in lieu of cash compensation for their
services). Conditional upon receipt of shareholder approval in
accordance with the policies of the TSX Ventures Exchange at the next
meeting of Canada Nickel shareholders, these RSUs will vest one year
from the date of grant.
I am a 3rd generation miner who was born and raised in the silver capital of Canada, Cobalt, Ontario. For the last 10 years I have been invested in the mining sector and as a retail investor found it difficult gathering information on companies of interest. For this reason we created Insidexploration.com as a means to share our due diligence with investors all around the world.
Disclosure
The thoughts and opinions expressed in my articles and research reports are my own and do not represent those of the companies I write about. I often buy and sell the stocks I write about and may do so at any point in time without warning.
Disclaimer
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Today is Taykwa Tagamou Nation (TTN) Advocacy Day.
I met with Chief Bruce Archibald, Deputy Chief Derek Archibald, Candice Tourville, Mark Selby, Pierre-Philippe Dupont & @anthonyrleardi. TTN & @CanadaNickel are working to advance #CriticalMinerals projects in the #Timmins area.
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