Canada Nickel Acquires Past Producing Texmont Mine, Canada
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Canada Nickel Company has signed a deal to acquire a 100 percent interest in the past producing Texmont property situated between the company’s Deloro and Sothman properties south of Timmins, Ontario. The company also released results from the first four holes at Texmont and first five holes targeting higher grade mineralization at Sothman. All nine holes have assays pending.
“The acquisition of the Texmont property provides near-term smaller scale production potential and is highly complementary to our large-scale Crawford and regional nickel sulphide projects. We are excited by the potential for leveraging the understanding of the geology at Texmont and additional high-grade areas at Sothman and Bannockburn and applying these learnings to our large regional property package,” said Mark Selby, chair and CEO of Canada Nickel Company.
“In our discussions with nickel consumers for the battery market, many of them are keen to have new nickel production that could come to market by 2025. Similarly, a number of investors have expressed interest in financing near-term production,” added Selby.
TEXMONT PROPERTY
The Texmont Property is located 36 kilometers south of Timmins and contains an ultramafic body with a target geophysical footprint approximately 1.2 kilometers long by 150 meters wide. A historic resource estimate of 3.2 million tonnes grading 0.9 percent nickel was reported.
Drilling continues at Texmont with several holes planned for winter 2023, with the goal of producing a current resource estimate using historic and new data, as the basis for an open pit mine plan to support a potential restart by 2025 or provide a source of higher-grade feed for the Crawford Nickel Sulphide project.
TRANSACTION TERMS
The company has entered into a binding agreement to acquire a 100 percent interest in 14 mining leases in exchange for a $250,000 cash payment and issuing a non-interest bearing promissory note of $3.75 million due March 14, 2023. At closing, the seller will be granted a 2 percent net smelter returns royalty, which can be bought down to 1 percent for $2.5 million at the company’s option. The property has a legacy ownership interest of 15 percent and net profits interest of 10 percent. The company intends to determine whether these interests are still valid. The company had previously acquired 14 claims surrounding these mining leases in 2022 as part of its regional property consolidation.
About Canada Nickel Company
Canada Nickel Company Inc. is advancing the next generation of nickel-sulphide projects to deliver nickel required to feed the high growth electric vehicle and stainless-steel markets. Canada Nickel Company has applied in multiple jurisdictions to trademark the terms NetZero Nickel™, NetZero Cobalt™, NetZero Iron™ and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel provides investors with leverage to nickel in low political risk jurisdictions. Canada Nickel is currently anchored by its 100 percent owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp.
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