Aim- and TSX-V-listed Cornish Metals has announced the sale of its 100% interest in the Nickel King and Opescal Lake properties, in Canada’s Northwest Territories, to Northera Resources for up to C$8-million.
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 4 000 ha in mining leases and mineral claims in Canada’s Northwest Territories,” Cornish Metals interim CEO and direction Ken Armstrong said.
Located 135 km north-east of Stony Rapids, Saskatchewan, the Nickel King nickel/copper/cobalt deposit is hosted within two arcuate stacked, moderately south-dipping norite sills and mineralisation has been traced over a total strike length of about 2 600 m.
A National Instrument 43-101-compliant geological resource model yielded 11.1-million tonnes grading at 0.40% nickel, 0.10% copper and 0.018% cobalt containing 44 500 t of nickel, 10 600 t of copper and 2 200 t of cobalt in the indicated category.
The total inferred resource contains 119 300 t of nickel, 29 000 t of copper and 5 600 t of cobalt.
The Nickel King property has a book value of nil.
Under the terms of the agreement, Northera will pay Cornish Metals a non-refundable cash payment of C$100 000 within five days of signing it. Within 95 days of signing the agreement, Cornish Metals will transfer to Northera the legal and beneficial title to the mining leases and mineral claims comprising the Nickel King property, and Northera will pay the company a non-refundable cash payment of C$900 000.
Cornish Metals and Northera will enter into a final definitive agreement on or before the date that is 60 days following the signing of the agreement.
Upon completion of a go-public transaction by Northera, resulting in a listing of securities on the TSX-V, or other stock exchange, Northera will issue to Cornish Metals common shares in the capital of Northera having an aggregate market value equal to C$7-million.