Canada Nickel Company (TSXV: CNC) is evidently looking to consolidate the Timmins area when it comes to potential nickel mineralization. The firm this morning announced it has conducted a total of 18 separate transactions that will see it acquire a total of 13 additional properties in the area.
The properties are located sporadically in the region, with each new property said to have ultramafic targets based on historic drilling and geophysical work. On a combined basis, the new property covers a total of 37.7 square kilometres.
On a more granular level, ten of the properties are said to have a larger footprint than the firms flagship Crawford property, while nine are confirmed to host similar mineralization. One property, referred to as Sothman, contains a history resource of 190,000 tons of 1.24% nickel over a 300 metre strike length. Four properties meanwhile have seen drill results intersect greater than 0.3% nickel.
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Collectively, under the arrangements entered the company has agreed to issue approximately 2.0 million shares, as well as $371,500 in cash. Certain properties have additional stipulations however, such as Sothman, where if the company achieves a nickel resource of 10,000 tonnes or more, they owe a $10.0 million bonus to Glencore, whom they acquired the property from, which can be paid in cash or shares.
Various work commitments and NSR’s have also been agreed to as follows:
- Deloro: NSR’s range from 2.0% to 5.0%
- Mann: NSR of 2.0%, work commitment of $1.7 million of which $0.5 million is required in year one
- Reaume: 2.0% NSR with a work commitment of 2,100 metres of drilling in year one
- Midlothian: NSR of 4.0% for gold, 2.0% for nickel, work commitment of $2.5 million, of which $500,000 is required in year one
- Reid: NSR of 2.0%, work commitment of 2,500 metres of drilling and an airborne survey
- Adam McCool: NSR of 2.0%
- Powell: NSR of 2.0%
Canada Nickel Company last traded at $3.07 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
