Canada Nickel Company (TSXV: CNC) this morning announced that it has entered into a binding letter of intent with Noble Mineral Exploration (TSXV: NOB) to acquire additional properties from the firm. The land acquisition follows airborne geophysics and other exploration that identified a high priority target within the MacDiarmid township.
Referred to as the MacDiarmid target, the property is located west of Glencore’ Kidd Creek Mine, and features an anomaly with a footprint measuring 1.8 kilometres long by 400 metres wide, which is 15% larger than the firms flagship Crawford Main Zone. The target was found following the compilation of historical exploration, including several drill logs, and airborne geophysics.
The discovery follows geophysics conducted in the fall on a number of properties owned or optioned by Canada Nickel. Targets for nickel-cobalt were identified at the MacDiarmid, Kingsmill, Mahaffy-Aubin and Nesbitt properties, with the MacDiarmid being labeled as the most attractive. The company has indicated that it intends to drill test all of the properties in the current season to further explore these targets.
The company has entered into an arrangement to acquire up to 80% ownership in exchange for a number of items, including:
- The issuance of 200,000 CNC shares
- The forgiveness of $160,224 owed by Noble to Canada Nickel
- The transfer of $500,000 in assessment credits to Noble
- An NSR of up to 1.75%
Canada Nickel will then obtain a 60% interest provided the above is completed, as well as $100,000 in exploration expenses are incurred within 18 months. That figure can rise to 80% if an additional $150,000 in exploration expense occurs over 36 months. Canada Nickel will also be required to maintain the claims and keep them in good standing.
Exploration permits for the property have reportedly been applied for, with drilling targeted to begin in early March.
Canada Nickel Company last traded at $3.96 on the TSX Venture.
Information for this briefing was found via Sedar and Canada Nickel Company. 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.
