Noble Mineral, Canada Nickel property agreements

May 20, 2020

2020-05-20 18:20 ET – Miscellaneous

The TSX Venture Exchange has accepted for filing documentation pertaining to a memorandum of agreement dated March 2, 2020, and an asset purchase agreement, option and joint venture agreements, and a partial assignment agreement, dated May 14, 2020, between the company and Canada Nickel Company Inc. (CNC), whereby the company has agreed to sell the Crawford Annex property, which covers 5,383 hectares, grant an option to CNC to acquire up to a 80-per-cent interest in five distinct areas, together covering 13,780 hectares, of the company’s Project 81 (the optioned property) and enter into a partial assignment agreement, whereby the company will assign to CNC a portion of the company’s right to purchase the title to the surface rights of up to 15,000 hectares appurtenant to the patented mineral rights that make up part of Project 81.

Under the terms of the agreements, the company has agreed to sell the Crawford Annex property and grant the options in exchange for an aggregate of $500,000 in cash, part of which will be offset by the company’s promissory note to CNC of $250,000 principal amount dated Feb. 7, 2020, and 500,000 common shares of CNC. In order to satisfy the option conditions, CNC must spend up to $1.5-million in exploration expenses on each optioned property within three years from closing and pay an additional $250,000 in cash or, at the company’s election, shares of CNC. The company and CNC will form a joint venture at the applicable pro rata share once the minimum 60-per-cent interest in optioned property is earned by CNC and the company will be granted a 2-per-cent net smelter return royalty on the applicable optioned property. The company will be entitled to receive an aggregate of up to $4,625,000 in cash according to the terms of the partial assignment agreement. The above-noted transactions were approved by the company’s disinterested shareholders at the annual general and special meeting held on May 5, 2020.

For more information, please refer to the company’s news releases dated March 4, 2020, April 6, 2020, May 12, 2020, and May 20, 2020.

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