Canada Nickel Company (TSXV: CNC) this morning announced the consolidation of several of its properties that were previously optioned from Noble Mineral Exploration (TSXV: NOB). The consolidation follows the two firms entering a binding letter of intent to wholly acquire the properties.
Under the binding letter of intent, Canada Nickel’s current option arrangements with Noble are to be terminated, with Canada Nickel instead acquiring a 100% stake in the five properties currently optioned from the firm. The arrangement will also enable the company to acquire a sixth property from Nobel.
The transaction will effectively allow for the company to expand and consolidate the Crawford Nickel project, bringing multiple previously optioned key properties under one banner. This consolidation reportedly will allow the company to focus on the multiple gold/VMS targets in the remaining land package.
The transaction proposed under the binding letter of intent will see Canada Nickel issue 3.5 million shares to Noble, in exchange for a 100% interest in the previously optioned claims, as well as the Bradburn/Dargavel property. The company will also have the right to repurchase half of the 2% royalty owned by Noble for $1.5 million per property, which increases over the next two years.
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Canada Nickel last traded at $3.31 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.
