Cornish Metals has signed a binding letter of agreement to sell its 100% interest in the Nickel King and Opescal Lake properties (together called Nickel King Property) to Northera Resources for a total consideration of up to C$8m ($5.8m).
The agreement outlines a structured payment plan, including an initial non-refundable cash payment and subsequent payments upon the transfer of property titles and a successful go-public transaction by Northera.
Under the binding letter of intent, Northera will make an immediate non-refundable cash payment of C$100,000 to Cornish Metals within five days of signing the agreement.
Within 95 days of this agreement, Cornish Metals is required to transfer the legal and beneficial titles of leases at the Nickel King Property to Northera and in return it will be paid a non-refundable cash of C$900,000.
The two companies will sign a definitive agreement within 60 days from the signing of the initial agreement.
Following Northera's successful listing on the TSX Venture Exchange or other stock exchange, Cornish Metals will be issued common shares in Northera with a total market value of C$7m.
The Nickel King Property, situated in the Northwest Territories, 135km northeast of Stony Rapids, Saskatchewan, is known for its Ni-Cu-Co deposit.
The deposit spans a strike length of approximately 2,600m and is contained within two arcuate stacked norite sills.
A compliant NI 43-101 geological resource model has indicated significant mineral resources at the Nickel King Property.
The indicated category boasts 11.1 million tonnes (t) with grades of 0.40% Ni, 0.10% Cu and 0.018% Co, containing 44,500t of Ni, 10,600t of Cu and 2,200t of Co.
Cornish Metals director and interim CEO Ken Armstrong said: “The sale of Nickel King aligns with Cornish Metals' objective to focus its efforts on advancing its 100% owned and fully permitted South Crofty tin project, in the UK, towards a construction decision.
“Cornish Metals will retain exposure to any future exploration success at Nickel King, as Northera works to recommence exploration activities at the Nickel King Property, which comprises approximately 4,000ha [hectares] in mining leases and mineral claims in Canada's Northwest Territories.”
